When Should You Remortgage? | CGR Financial

Remortgaging (switching your mortgage to a new deal) could save you thousands of pounds. But how do you know when it's the right time? Here are five signs that suggest you should consider remortgaging.

1. Your Current Deal Is Ending

This is the most common trigger for remortgaging. When your fixed rate or introductory deal ends, you'll typically move onto your lender's Standard Variable Rate (SVR).

SVRs are usually significantly higher than fixed rates, often 7-8% compared to 4-5% for a fixed deal. On a £150,000 mortgage, that could mean paying hundreds of pounds more each month.

When to act: Start looking at remortgage options 3-6 months before your deal ends. This gives you time to compare deals and complete the application before you move to SVR.

2. You're Already on SVR

If you've already rolled onto SVR, you could be overpaying right now. Many homeowners stay on SVR through inertia, not realising how much they could save.

The good news is there's no penalty for leaving SVR. You're not locked into a deal. This means you can remortgage at any time without paying early repayment charges.

Action: If you're on SVR, contact a mortgage broker today to see what deals you could access.

3. Your Property Value Has Increased

If your property has increased in value since you bought it, your loan-to-value (LTV) ratio has improved. This could qualify you for better mortgage rates.

Mortgage rates are tiered by LTV. The best rates are typically available to those with 60% LTV or lower (meaning you have 40%+ equity). Key thresholds include:

• 90% LTV
• 85% LTV
• 80% LTV
• 75% LTV
• 60% LTV

If property growth has pushed you into a better LTV bracket, remortgaging could secure you a significantly lower rate.

4. Interest Rates Have Dropped

Mortgage rates fluctuate with market conditions. If rates have fallen since you took out your current deal, you might be able to remortgage to a lower rate.

Important: Check your current mortgage terms first. If you're still in a fixed deal, you may face early repayment charges (ERCs) for leaving early. These can be substantial, often 1-5% of the outstanding balance.

You need to calculate whether the savings from a lower rate outweigh any ERCs you'd pay. A mortgage broker can help with this calculation.

5. Your Circumstances Have Changed

Life changes can make remortgaging worthwhile:

Your Income Has Increased

A higher income could help you pass affordability checks for better deals that weren't available when you first got your mortgage.

You Want to Release Equity

If you need funds for home improvements, paying off debts, or other purposes, remortgaging can allow you to release equity from your property.

You Want to Change Your Mortgage Type

Perhaps you want to switch from interest-only to repayment, or change your mortgage term. Remortgaging gives you the opportunity to restructure.

You're Getting Divorced

If you're separating from a partner, you may need to remortgage to remove one person from the mortgage or to buy out their share.

When NOT to Remortgage

Remortgaging isn't always the right choice:

• High early repayment charges: If ERCs outweigh potential savings
• Small mortgage balance: Fees might not be worth it for small mortgages
• Changed circumstances: If your income or credit has worsened, you might not get a better deal
• Near the end of your mortgage: Fees may not be recouped in remaining time

Product Transfer vs Full Remortgage

When your deal ends, you have two main options:

Product Transfer

Switch to a new deal with your existing lender. This is often quicker and simpler, with no new valuation or legal work needed. However, you're limited to what your current lender offers.

Full Remortgage

Switch to a completely new lender. This requires a full application, valuation, and legal work, but gives you access to the whole market. Many lenders offer free valuations and legal work to attract remortgage business.

Our advice: Always compare both options. A product transfer might be convenient, but a full remortgage could save you more money.

How to Get Started

If any of these signs apply to you, here's what to do next:

1. Check your current deal: When does it end? Are there ERCs?
2. Estimate your property value: Check recent sales in your area
3. Gather your documents: Payslips, bank statements, ID
4. Get advice: A mortgage broker can compare the market for you

Need Help Deciding?

At CGR Financial, we help homeowners across Northern Ireland decide whether remortgaging is right for them. We'll compare your current deal against what's available in the market and show you whether switching makes sense.

Contact us for a free remortgage review. No obligation, no pressure.