As energy and food prices rise faster than they have done in 40 years, getting the best deal has never been more important. This raises the question: is now the best time to remortgage? 

Most of us are feeling the squeeze on our finances, as wages can’t keep up with the increasing cost of living. The average household energy bill in Britain is forecast to reach £4,420 next April, which is more than three times what it was at the start of 20221. Read about the Government’s energy rebate plan here.  

The Bank of England’s base rate is set to rise in an attempt to control inflation. When the base rate rises, mortgage rates tend to follow suit, as lenders pass the interest on to their customers. For anyone on an interest-only or tracker mortgage, you’ll no doubt have noticed an increase in your monthly payments. 

To protect from further interest rate rises and potentially save money, the Financial Conduct Authority (FCA) explains how homeowners should consider remortgaging now, “Given the rising cost of living, it’s important that borrowers consider their options and switch if they can where it meets their needs and circumstances and saves them money2.” So whilst you may not be able to directly control the cost of living, you can book in for a mortgage review and see if you could switch to a better deal. 

Benefits of remortgaging

The FCA revealed that around 110,000 people could save less than £500 a year for two years, 110,000 people could save between £500-£1,000 a year for two years if they remortgaged off their standard variable rate3. These are not insignificant savings, yet so many don’t realise that remortgaging could be an option. 

Many homeowners wait until their fixed rate deal is near the end before remortgaging. While it’s important to remortgage before your deal ends, as you don’t want to fall onto a standard variable rate (SVR) and end up paying more, you also don’t have to wait until your fixed rate ends before you can think about remortgaging - you can do this at any time. You may have to pay an early repayment charge, but your mortgage adviser can work out if the savings you’d make warrants paying the charge. 

Our Head of Lending, Brain Murphy explains, “There is certainly increased interest from consumers to switch their mortgage plan early. With growing concern on interest rates, increasing cost of living and energy bills, a mortgage is something homeowners can take a degree of control over by fixing their rate for a specific period.”

Get the right advice 

If you’re looking for certainty and stability with your mortgage payments, you should think about remortgaging to a fixed rate. This will protect you from any further interest rate rises which could potentially drive your mortgage payments up.

Our mortgage advisers can review your mortgage and see if there’s a better deal than the one you’re currently on. We don’t charge a fee for the initial conversation and are happy to chat through your options. 

Find out if now is the best time to remortgage and get in touch today. 


1 Financial Times





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.