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With UK mortgage rates falling, more people are asking whether now is the best time to remortgage. For some, remortgaging could save thousands of pounds a year. We explain how to do it if you're asking the recurring question: Should I remortgage now?
If your current mortgage deal ends in the next six months you should start the remortgage process now. According to the Financial Conduct Authority you’re not alone; 1.5 million homeowners’ fixed mortgage deals end in 2024.
Speak to a fee-free broker to find the best deal: you can lock in a rate now then keep an eye on mortgage rates to see if a better deal comes up before you commit. Our mortgage broker partners at L&C offer this Rate-Check service for free.
If you’re on your lender’s standard variable rate, you should urgently review your remortgage options because typical SVR rates are significantly higher than the best remortgage deals available.
There are other reasons why you may want to remortgage now such as to fund home improvements or pay off debt, read on to find out more.
Use our online mortgage finder to compare your current mortgage with other deals.
Remortgaging when your current deal ends could save you thousands of pounds a year on your mortgage payments.
If you’re coming off a cheap fixed rate mortgage in 2024, your new mortgage is likely to cost you more than your current one as even the best mortgage rates are much higher than the deals we’ve seen in recent years.
But remortgaging could still save you money because if you do nothing and end up on your lender’s SVR it could cost you significantly more.
Here’s an illustration of mortgage costs, based on a 25 year term, of how much you may pay on the average 5 year mortgage rate* compared to the average SVR. You can also use our mortgage calculator to check how much your new rate would cost you.
| Mortgage balance | 3.97% mortgage rate* | 8.16% mortgage rate* | Monthly difference | Annual difference |
| £100,000 | £526 | £782 | £256 | £3,072 |
| £150,000 | £789 | £1,174 | £385 | £4,620 |
| £200,000 | £1,052 | £1,565 | £513 | £6,156 |
| £250,000 | £1,315 | £1,956 | £641 | £7,692 |
| £300,000 | £1,579 | £2,347 | £768 | £9,216 |
| £350,000 | £1,842 | £2,739 | £897 | £10,764 |
| £400,000 | £2,105 | £3,130 | £1,025 | £12,300 |
So if you’re asking yourself should I remortgage now? it’s vital to get expert advice.
Remortgaging when your house value has increased means you may get access to better rates compared to other deals currently on the market. When you remortgage, the rates you’ll be able to access depend on the LTV – this stands for loan-to-value, and tells you what percentage of the home’s value is borrowed.
So if your house increases in value you’ll own a larger proportion of it. Plus, if you’ve taken out a repayment mortgage, you will have built up equity in it via your repayments too.
In September 2024, the best remortgage rate on a 5 year fixed rate at 90% LTV is 4.74%, while at 80% LTV the best remortgage rate available is 4.29%.
UK mortgage rates are higher than we’ve seen in recent years due to the Bank of England‘s series of hikes to the base rate which started in December 2021, taking it from its historic low of 0.1% to the recent high of 5.25%.
We saw a sharp spike in UK mortgage rates in the aftermath of Liz Truss’s disastrous mini-budget in September 2022, and mortgage rates are down since then.
The Bank of England made the first base rate cut in August 2024 from 5.25% to 5% and mortgage rates have continued to fall. More cuts to interest rates are expected and as a general rule: if interest rates fall, the mortgage rate forecast would be that mortgage rates would be expected to fall too. Read more in our guide Mortgage rates forecast: Will rates go down?
Any cuts in interest rates depend on factors such as what happens with inflation. And predictions made by experts on mortgage rates have been proved wrong time and again in recent months. So rather than trying to predict what will happen with UK mortgage rates, instead it’s vital you focus on doing what’s right for you.
If you lock in a rate now you can keep it under review to see if a better deal comes up before you switch to your new deal. Our mortgage broker partners at L&C offer this Rate-Check service for free
When you’re considering should I remortgage now? start by checking your mortgage deal. Remind yourself of your current rate, check when that deal ends, and penalties for exiting early – often called early repayment charges – and what mortgage rates
Yes. You can start the remortgage process now if your current deal ends within the next six months. You can keep the rate you’ve got under review. While some brokers may charge you to re-check the market, our mortgage partners at L&C will do this free of charge so you know you’ll get the best rate available at that time.
Get fee-free remortgage advice from our partners at L&C. Use the online remortgage finder or speak to an advisor today.
In most cases, moving to your lender’s standard variable rate isn’t advisable because they can be extremely expensive and you may be able to save by remortgaging onto a better deal.
However, an SVR mortgage might be a good solution for some, for example, if you have a small mortgage. But if you’re asking ‘Should I remortgage now?’, don’t assume what the best option will be. Always speak to a fee-free broker to make sure you’re on the best deal for you.
You should fix your mortgage if you want budgeting certainty that the amount you’ll pay each month on your mortgage won’t change. But if you fix your mortgage, while your repayment amounts won’t increase during the term they won’t go down either if the Bank of England cuts the base rate further.
If you’re asking should I remortgage now and want a fixed rate mortgage, you’ll need to decide how long you want to fix for.
Whether a 2 or 5 year fixed rate mortgage is best for you will depend on your circumstances. You may want to fix for 2 years in the hope that mortgage rates will improve in the near future and that you’ll be able to remortgage onto a cheaper deal once your 2 year deal ends. Although you’ll typically pay a higher rate on a 2 year fix than a 5 year fix. Or you may prefer the security of a 5 year term. Or you might opt for a 3 year fix.
The advantages of fixing for 10 years or longer are that you’ll have the security of knowing how much you’ll pay on your mortgage for a longer period. Plus, you’ll usually pay less in arrangment fees than if you take out multiple 2 or 5 year mortgages. Fixing your mortgage for 10 years or longer also protects you against changes to lending criteria; if a lender tightens up its lending criteria it may make it harder for you to get a mortgage.
However, fixing your mortgage for such a long time means you’ll run the risk of potentially missing out on better deals. Also consider what would happen if you move house? Some mortgage deals are portable which means you can take them with you penalty free if you move to another property. So make sure you check the small print.
Get fee-free remortgage advice from our partners at L&C. Use the online remortgage finder or speak to an advisor today.
When you’re asking should I remortgage now, how do tracker mortgages and discounted variable rate mortgages compare to fixed rate mortgages?
Tracker mortgage: These go up and down in line with the Bank of England base rate. So if there’s a cut in interest rates, the amount you’ll pay on your mortgage each month would reduce.
Discounted variable rate mortgages: These work in a similar way but instead of tracking the base rate, it tracks the lender’s SVR at a discounted rate.
Some variable rate mortgages come with no early repayment charges which means you could switch to a different deal later down the line without having to pay a hefty penalty. For more information read our guide: What type of mortgage should I get?
Yes. There are lots of reasons why you may want to remortgage in the middle of a mortgage deal such as to increase your borrowing. But whether it’s right for you will depend on your circumstances:
So if you’re asking should I remortgage now? and you’re in the middle of a mortgage deal before you decide, it’s critical to get advice. A broker can help with the calculations involved in switching and your application. They also have access to deals you can’t get by going directly to the lender and can find the right deal for your circumstances.
Get fee-free remortgage advice from our partners at L&C. Use the online remortgage finder or speak to an advisor today.
Apart from saving money, there are lots of other reasons you may ask ‘should I remortgage now?’
If you’re asking ‘Should I remortgage now’, you’ll also need to make sure you’re in good financial shape before you apply to remortgage. This includes checking your credit rating and taking steps to improve it if necessary, staying out of your overdraft and paying all your bills on time. Find more tips in our guide How to get a mortgage in 6 easy steps.
There are some circumstances which mean remortgaging is unlikely to be a good option such as:
If you’re asking should I remortgage now, you may be considering switching to an interest-only mortgage. If so you’ll need to consider:
If you’re asking should I remortgage now you’ll want to know how much you’ll be able to borrow and what deals are available. To get an idea in a matter of minutes use our remortgage calculator provided by our mortgage partners at L&C.
If you can afford it, paying off your mortgage may be the best option for you. But there are pros and cons to consider. For more information read our guide Should I pay off my mortgage.
It is too late to remortgage onto one of the ultra-low rates that were available in previous years. But just because mortgage rates are higher now isn’t a reason to not act.
The key is when you’re asking yourself should I remortgage now is to be fully informed about your options and the easiest way to do this is to speak to our fee-free mortgage broker partners at L&C.
HomeOwners Alliance Ltd is registered in England, company number 07861605. Information provided on HomeOwners Alliance is not intended as a recommendation or financial advice.
Mortgage service provided by London & Country Mortgages (L&C), Unit 26 (2.06), Newark Works, 2 Foundry Lane, Bath BA2 3GZ, authorised and regulated by the Financial Conduct Authority (FRN: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
HomeOwners Alliance Ltd is an Introducer Appointed Representative (IAR) of Seopa Ltd, for home insurance, authorised and regulated by the Financial Conduct Authority (FCA FRN: 313860).
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