Signs it's time to remortgage

Remortgaging means switching to a new mortgage deal. This will either be with your current lender or a new one.

Getting advice and moving to a new deal when the time is right can mean lower monthly mortgage payments, better interest rates, or releasing equity from your property.

Below are the signs it may be time to remortgage.

1. Fixed rate is ending

There are a few reasons people choose to remortgage their property; one of the most common is when their fixed-rate is coming to an end.

Once your fixed-rate deal ends, you are usually moved on to the lender’s Standard Variable Rate (SVR). In most cases, this rate is a lot higher than the introductory rate.

If your rate is due to expire within the next six months, it is recommended to speak with a mortgage broker who can look at your options and secure a new rate before your deal expires.

2. Interest rates are improving

The mortgage market is highly volatile and is shifted by a range of factors including swap rates and inflation. Rates are constantly changing, and may have decreased since taking out your original mortgage product, which could be a good opportunity to switch to a better deal. Even a small saving could lead to a big saving over the term of your mortgage.

3. Increase in property value

The value of your property may have increased since you bought it. Property value growth with regular mortgage repayments is likely to put homeowners in a stronger position than when they originally purchased their house. Getting an up-to-date estimate of the value of your property could be worth looking at to see if you can access lower-LTV mortgage products.

4. Release equity from your property

Some homeowners decide to remortgage to access some of the equity (essentially money) built up in their property.

Common reasons for releasing equity are:

• Home improvements
• Helping family members with a deposit for a property
• Debt consolidation
• Paying for a large purchase, such as a car or holiday

Borrowing against your property may mean you can release funds without taking out higher-interest credit. Equity release isn’t for everyone; it is important to seek financial advice to ensure it is the best option for you.

A mortgage review can determine whether you are on the best deal for your circumstances, and possibly save you money over the term of the mortgage.