Written by: Danny Belton - Head of Lending
We’re often asked when the right time to remortgage is, and in fact, how soon can you remortgage? The response to that is simple.
Don’t assume you need to wait until your current deal ends before you get the ball rolling. Start the remortgage process early - around six months before your existing deal ends. This will give you time to potentially find a more competitive deal, though with current market conditions, it’s all about getting the most reasonable interest rate for your circumstances.
If you don’t find a better deal at the end of your current term, you may revert to your lender’s standard variable rate (SVR). This could be considerably higher and greatly increase your monthly payments.
Remortgaging is very common, and most people go onto some form of fixed rate. According to UK Finance1, there are around 8.5 million residential mortgages outstanding in the UK. Of those, 81% are on a fixed rate. 8% are on a tracker, and 9% are on their lender’s SVR. 9% of 8.5 million translates to 773,000 people.
While there are occasionally reasons to move onto your lender's SVR, we always recommend speaking to your adviser about what is going to work best for you. 1.6 million mortgage deals are due to end in 20241 - are you one of them?
Here’s some top tips to help you prepare for your remortgage:
8 top tips for getting ready to remortgage
1. Kickstart your remortgage ahead of time
The only reason to wait until the last minute is under the hope that mortgage rates will fall more, but this decline is steady. As we’ve seen, the market can be unpredictable. For stability and certainty, we recommend working with an adviser to get a new offer. A mortgage adviser knows the ins and outs of different lenders’ offer periods, and can help you snag a deal that works for you.
2. Give your credit score a tune-up
Your credit report is the key to unlocking more favourable mortgage terms. There are a variety of factors that will affect your creditworthiness, but there’s plenty you can do to make improvements in your score, even small ones. Click the button below for more details about improving your credit score!
3. Make sure you’re on the electoral register
If you’re not on the electoral roll, get on it! And if you are, make sure your details are up-to-date. Lenders use this information to double check that you are who you say you are.
Did you know that registering on the electoral roll can give your credit score a little boost?
4. Steer clear of your overdraft
Avoid dipping into your overdraft, especially in the months leading up to your mortgage application. Some lenders may frown about it, thinking you’re cutting things a bit too close financially.
5. Avoid spending large amounts of money
Lenders may ask for your last three months’ bank statements before applying for a mortgage. This is so they can check that your income matches your payslips, and that you could still afford your mortgage if rates go up.
6. Don’t apply for new credit
Patience is key, which is why we recommend waiting six months between seeking credit and applying for a mortgage. Anything less than that, and below three months in particular, could have an impact on both your credit score and mortgage application.
7. Get your paperwork ready
Lenders need to see a pretty sizable chunk of paperwork throughout the mortgage application process. From bank statements and payslips to proof of address and ID documents, we encourage you to gather all your evidence ahead of time. Being prepared means smoother sailing through the application process.
8. Pay your bills on time
Punctuality is important when it comes to bill payments. In fact, it’s one of the most important things! Whether it’s your phone or utility bill, pay on time, every time. Late payments could linger on your credit file for years, so avoid it altogether by setting up direct debits.
Think you’re ready to remortgage?
If you’re asking if it’s too soon to remortgage, it’s worth speaking to a mortgage adviser. Remortgaging too soon can lead to early repayment charges, which is why we recommend speaking to a professional.
Our experts can offer advice about the right time to remortgage for you, and guide you through the whole process when you’re ready. We have access to deals not found on the high street, which means we’re perfectly placed to help you find a mortgage that suits your personal and unique circumstances.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Related Articles
Getting ready to remortgage
Can I remortgage my house to buy another property?
