How Early Should I Start Looking for a New Mortgage Before My Current Deal Ends?

Can I arrange a new mortgage before my fixed rate ends?

Yes. You can usually start looking for a new mortgage while you’re still within your existing fixed-rate period. Your new mortgage can then be arranged to start around the time your current deal finishes.

This can give you more time to compare your options rather than having to make a decision at the last minute.

What happens when my fixed-rate mortgage ends?

When a fixed-rate mortgage ends, you’ll usually move onto your existing lender’s Standard Variable Rate (SVR) unless you’ve arranged another mortgage deal.

An SVR can be higher than the rate you were previously paying and can change over time.

That’s why it’s worth knowing when your current mortgage deal finishes and reviewing your options beforehand.

How far in advance can I remortgage?

The exact timing will depend on the lender and the mortgage product you’re applying for.

Mortgage offers are generally valid for a limited period, which can make it possible to secure your next mortgage before your existing deal ends.

Starting several months ahead also gives you time to deal with the application, valuation and any legal work that may be required.

Should I remortgage with my existing lender or move to a new lender?

Your existing lender may offer you a new mortgage deal, often known as a product transfer.

That can be convenient, but it doesn’t necessarily mean it’s the most suitable option available to you.

Comparing your existing lender’s offer with mortgages available from other lenders can help you understand your options before deciding what to do.

Will I have to pay an early repayment charge?

Possibly.

Many fixed-rate mortgages have an Early Repayment Charge (ERC) if you repay or switch the mortgage before a particular date.

The amount and the period during which it applies will be set out in your existing mortgage agreement.

Timing your new mortgage to begin when your current deal ends can help avoid unnecessary early repayment charges, although individual circumstances and mortgage terms vary.

Is remortgaging just about getting a lower interest rate?

No. There are several reasons you might consider remortgaging.

You may want to reduce your monthly payments, change the length of your mortgage, switch mortgage type, consolidate borrowing or release some of the equity in your property.

Whether remortgaging is appropriate will depend on your circumstances, the costs involved and the mortgage deals available.

Should I speak to a mortgage adviser before my deal ends?

Speaking to a mortgage adviser several months before your existing deal finishes can give you time to understand your options without being under pressure to make a last-minute decision.

A mortgage adviser can compare your existing lender’s options with mortgages available elsewhere and take account of interest rates, fees and other costs when looking at the overall deal.

At GHL Direct, we compare thousands of mortgage deals from more than 50 UK lenders and can help you arrange your next mortgage ready for when your current deal ends.

Mortgage deal ending soon? Speak to a mortgage adviser and compare your remortgage options.