When Should I Start Remortgaging?

The Six-Month Rule: Why Early Planning Matters

The general rule of thumb among mortgage professionals is to start exploring your remortgage options around six months before your current deal ends. This is not an arbitrary figure — it is based on how the mortgage market works.

Most lenders issue mortgage offers that are valid for between three and six months. By starting the process six months ahead, you give yourself enough time to:

• Research the market and compare available deals
• Consult with a mortgage broker for professional advice
• Submit your application and provide all required documents
• Allow time for the valuation, underwriting, and legal work
• Handle any unexpected delays without ending up on the SVR

Some lenders and brokers now recommend starting even earlier — up to nine months before your deal ends — particularly in a volatile rate environment where locking in a good rate early can be advantageous.

The key point is that starting early does not commit you to anything. You can secure a rate and still walk away if a better deal comes along before completion, depending on the lender's terms.

What Happens If You Leave It Too Late?

When your fixed-rate or tracker deal expires, you will automatically move onto your lender's standard variable rate (SVR). The SVR is typically two to four percentage points higher than the rate you were paying on your deal.

To put this in perspective, on a £200,000 mortgage:

• At a 4% fixed rate: approximately £1,055 per month
• At a 7% SVR: approximately £1,413 per month
• Difference: approximately £358 per month — or over £4,000 per year

Even a few months on the SVR can cost you a significant amount. This is why planning ahead is so important. Every month you spend on the SVR while waiting for a new deal to complete is money that could have been saved.

That said, being on the SVR is not the end of the world. You can still remortgage from the SVR at any time with no early repayment charges. But the financial cost of being there unnecessarily is real and avoidable.

Key Dates and Triggers for Remortgaging

While the six-month-before-expiry rule is the most common trigger, there are several other situations where you might want to consider remortgaging:

• Your deal is about to expire: The most obvious trigger. Set a calendar reminder for six months before your deal end date.
• Interest rates are falling: If the Bank of England reduces the base rate, or market rates drop significantly, it may be worth remortgaging even before your deal ends — provided the savings outweigh any early repayment charges.
• Your property has increased in value: If your LTV has dropped below a key threshold (such as from 80% to 75%, or 75% to 60%), you may qualify for significantly better rates. A remortgage can help you access these improved deals.
• Your financial situation has changed: An increase in income, paying off debts, or other positive financial changes can improve the deals available to you.
• You need to release equity: If you need funds for home improvements, debt consolidation, or other purposes, a remortgage can allow you to borrow against the equity in your home.
• Your circumstances have changed: Separation, divorce, or wanting to add or remove someone from the mortgage can all be reasons to remortgage.

Can You Start Too Early?

While early planning is generally beneficial, there are scenarios where remortgaging too early can work against you:

Early repayment charges (ERCs): If you are still within a fixed-rate or tracker deal period, you will likely face ERCs for leaving early. These can range from 1% to 5% of your outstanding balance, which on a £200,000 mortgage could mean paying between £2,000 and £10,000. Before remortgaging early, calculate whether the savings from the new rate outweigh the ERC.

Rate changes: If you lock in a rate six months early but rates continue to fall, you may miss out on better deals. However, many lenders allow you to switch to a better product if one becomes available before completion — ask your broker about this.

Mortgage offer expiry: If you secure a mortgage offer too far in advance and it expires before your current deal ends, you may need to reapply, which could mean a different rate and additional credit checks.

The solution is to start researching early but time your actual application so that the new deal aligns with your current deal's expiry date. A mortgage broker can help you plan this timing precisely.

Creating Your Remortgage Timeline

Here is a practical timeline you can follow to ensure a smooth remortgage process:

• 9 months before deal ends: Start monitoring interest rates and thinking about what you want from your next mortgage (fixed vs variable, term length, etc.)
• 6 months before: Begin actively comparing deals. Contact a mortgage broker for advice. Get a decision in principle.
• 5 months before: Submit your formal application. Gather and provide all required documents promptly.
• 4 months before: Valuation, underwriting, and legal work are underway. Respond quickly to any requests for additional information.
• 2-3 months before: Receive your mortgage offer. Legal work continues in the background.
• 1 month before: Everything should be in place for completion. Your solicitor confirms the completion date.
• Deal end date: Your new mortgage completes seamlessly, and you move onto your new rate without ever touching the SVR.

This timeline gives you a comfortable buffer for any delays while ensuring your new deal starts as close to your current deal's expiry as possible.

What If Your Current Deal Has Already Ended?

If you are already on your lender's SVR, do not panic — but do act quickly. The good news is that being on the SVR means you have no early repayment charges to worry about, so you are free to remortgage at any time.

The bad news is that every month on the SVR is costing you more than it needs to. The average SVR is significantly higher than the best available fixed rates, so there is a clear financial incentive to start the remortgage process as soon as possible.

If you are on the SVR:

• Contact a mortgage broker or your lender immediately to discuss your options
• Ask your current lender about product transfer options — these can often be arranged quickly
• Have your documents ready so you can apply without delay
• Consider a deal with a fast completion time to minimise the number of months you spend on the SVR

Remember, there is no penalty for being on the SVR — you simply want to move off it as quickly as possible to start saving money.