Looking for a few quick comments on what to do if your fixed mortgage is due for remortgage
Hiya, looking for a few quick comments for The i Paper on what to do if your fixed mortgage is coming up in the next few weeks/months please. Thank you!
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Don't wait for your fixed rate to end before reviewing your mortgage.
Many homeowners are surprised to learn they can often secure a new deal up to six months before their current rate expires. The biggest mistake is assuming your existing lender's offer is automatically the best option. This is the ideal time to review not just the interest rate, but whether your mortgage still fits your circumstances, future plans and monthly budget. Borrowers who start the process early usually have more choice, more flexibility and less risk of ending up on their lender's Standard Variable Rate. Even if rates improve before the new mortgage starts, lenders will often allow borrowers to switch to a better product, so there is very little downside to exploring your options sooner rather than later.
Many homeowners are surprised to learn they can often secure a new deal up to six months before their current rate expires. The biggest mistake is assuming your existing lender's offer is automatically the best option. This is the ideal time to review not just the interest rate, but whether your mortgage still fits your circumstances, future plans and monthly budget. Borrowers who start the process early usually have more choice, more flexibility and less risk of ending up on their lender's Standard Variable Rate. Even if rates improve before the new mortgage starts, lenders will often allow borrowers to switch to a better product, so there is very little downside to exploring your options sooner rather than later.
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With the ongoing volatility and uncertainty in the market, the worst thing borrowers can do is nothing. We would always recommend securing a new mortgage product six to seven months before your current deal expires. This gives you protection if interest rates rise further, while still retaining flexibility if interest rates fall. Securing a deal early does not commit you to taking that product. If rates fall and a cheaper option becomes available before your new deal starts, you can switch to the lower rate instead with typically zero costs incurred. Regular check-ins with your adviser are also important. If your adviser does not actively monitor the market on your behalf, staying in touch ensures you can take advantage of any improvements in pricing before your remortgage completes.
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If your fixed rate is ending in the next few months, the worst thing you can do is nothing.
Most lenders will automatically move you onto their Standard Variable Rate when your deal expires, which can be significantly higher than the best rates currently available. That's unnecessary cost every single month.
The good news is you can secure a new rate up to six months in advance, so there is no benefit to waiting. If rates drop before your completion date, most lenders will allow you to switch to a better deal anyway.
Speak to a whole of market broker now rather than going directly to your existing lender. A broker will compare hundreds of products across the market to find the best fit for your circumstances, whether that's a two or five year fix, a tracker, or something more flexible.
Remortgaging isn't complicated. But leaving it too late can be costly
Most lenders will automatically move you onto their Standard Variable Rate when your deal expires, which can be significantly higher than the best rates currently available. That's unnecessary cost every single month.
The good news is you can secure a new rate up to six months in advance, so there is no benefit to waiting. If rates drop before your completion date, most lenders will allow you to switch to a better deal anyway.
Speak to a whole of market broker now rather than going directly to your existing lender. A broker will compare hundreds of products across the market to find the best fit for your circumstances, whether that's a two or five year fix, a tracker, or something more flexible.
Remortgaging isn't complicated. But leaving it too late can be costly
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The smartest move is to secure a fixed-rate deal now. It is one of the few real win-win opportunities available to borrowers because it protects you from rising rates while still allowing you to benefit if rates fall.
Most lenders let you lock in a rate up to six months before your current mortgage ends, while existing lenders will often allow a new deal to be reserved around three months before expiry.
If rates rise, you are protected. If rates fall, many lenders will allow you to switch to the lower rate before completion. That puts you in a far stronger position than waiting until your fixed term ends and simply taking whatever rates are available at the time.
There is very little downside to acting early. You protect yourself against rising rates and keep your options open if pricing improves. If it all sounds like too much to manage, a good mortgage broker can handle it — and will often save far more than any fee they charge.
Most lenders let you lock in a rate up to six months before your current mortgage ends, while existing lenders will often allow a new deal to be reserved around three months before expiry.
If rates rise, you are protected. If rates fall, many lenders will allow you to switch to the lower rate before completion. That puts you in a far stronger position than waiting until your fixed term ends and simply taking whatever rates are available at the time.
There is very little downside to acting early. You protect yourself against rising rates and keep your options open if pricing improves. If it all sounds like too much to manage, a good mortgage broker can handle it — and will often save far more than any fee they charge.
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If your mortgage rate is due to expire in the next few weeks, then you will need to jump on a quick remortgage or product transfer and take whatever is available, unless you are prepared to sit on the lender's Standard Variable Rate for a while. If you have a little time, you can still grab a new deal, and most lenders will let you switch to something better before the new deal starts. I don't think we will see 'wholesale' change in rates, but any reduction is naturally appreciated by borrowers.
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Speak to a broker, understand your options and get something locked in.
Then sit back, relax and let the broker reassess if anything more compelling comes up between now and completion.
A broker can discuss how you might secure a better rate, bring payments down or borrow more as part of your remortgage.
Then sit back, relax and let the broker reassess if anything more compelling comes up between now and completion.
A broker can discuss how you might secure a better rate, bring payments down or borrow more as part of your remortgage.
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If your fixed rate ends in the next few weeks or months, do not wait until the last minute and do not sleepwalk onto the standard variable rate. Start reviewing around six months before the end date where possible, because most mortgage offers can be secured in advance and reviewed again if pricing improves.
The biggest mistake is chasing the cheapest headline rate without looking at the full cost. Product fees, valuation fees, legal costs, early repayment charges and your loan-to-value can completely change what is actually best.
I would also speak to your existing lender and compare the wider market. A product transfer may be quicker and cleaner, but it is not automatically the best option.
The key is to stress-test the new payment before you commit. Do not just ask, “can I get the mortgage?” Ask, “can I live comfortably with this payment if life gets more expensive again?”
The biggest mistake is chasing the cheapest headline rate without looking at the full cost. Product fees, valuation fees, legal costs, early repayment charges and your loan-to-value can completely change what is actually best.
I would also speak to your existing lender and compare the wider market. A product transfer may be quicker and cleaner, but it is not automatically the best option.
The key is to stress-test the new payment before you commit. Do not just ask, “can I get the mortgage?” Ask, “can I live comfortably with this payment if life gets more expensive again?”
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If your fixed rate is ending in the next few weeks or months, the one thing you don't want to do is sit on your hands and drift onto your lender's standard variable rate, because that is almost always the most expensive place to be. You can usually lock in a new deal up to six months before your current one ends, so there is no prize for waiting until the last minute.
The bit most people don't realise is that securing a rate early doesn't trap you. If rates fall before your new deal starts, most lenders will let you switch to the cheaper one, so you are protected on the way up and still in the game on the way down. My advice is simple: speak to a whole of market broker now, get something locked in, and let them keep an eye on it for you right up to completion.
The bit most people don't realise is that securing a rate early doesn't trap you. If rates fall before your new deal starts, most lenders will let you switch to the cheaper one, so you are protected on the way up and still in the game on the way down. My advice is simple: speak to a whole of market broker now, get something locked in, and let them keep an eye on it for you right up to completion.