When to remortgage: the right time to switch

Knowing when to remortgage comes down to one simple rule: start looking 3 to 6 months before your current deal ends. That's usually enough time to compare a wide range of lenders, get an application through underwriting, and complete before your existing lender switches you onto its Standard Variable Rate (SVR).

If you're planning to move to a new lender, aim to start around 6 months out. Most mortgage offers are valid for 3 to 6 months, so you can lock in a deal now and let it sit until your current one expires.

If you're staying with your existing lender through a product transfer, you can usually leave it a little later - 3 to 4 months before your deal ends is normally plenty of time, since there's no legal work or new affordability assessment involved.

If you've already missed your deal end date and are sitting on your lender's SVR, there's no ideal window left to wait for. It's worth speaking to an advisor as soon as possible, since SVR rates are typically set well above the average fixed or tracked deal.

This guide focuses on residential remortgages. If you're looking at a buy-to-let remortgage, the same broad timing principles apply, though lenders assess affordability differently based on rental income rather than personal salary, following separate underwriting standards for buy-to-let lending set out by the Prudential Regulation Authority.

There isn't just one trigger for remortgaging. Alongside your deal end date, these five situations are the most common reasons homeowners decide it's time to switch. If your goal is releasing cash from your home rather than switching your existing deal, it's also worth reading about what is equity release as a different route to consider.

If you're planning to borrow more to fund home improvements or pay off other borrowing, remortgaging can be one route - though a debt consolidation remortgage isn't the right choice for everyone, since it means securing other debts against your home for a longer term. Consolidating debts against your home could mean paying more overall and over a longer term, so weigh this up carefully with an advisor before deciding.

Remortgaging isn't always the right move, even if your deal is due to end soon. There are a few scenarios worth thinking through carefully before you commit to switching.

• The early repayment charge outweighs the savings. Early repayment charges (ERCs) are typically 1% to 5% of your outstanding balance. On a £200,000 mortgage, a 2% ERC would cost £4,000 - so it's worth checking whether the savings from a new deal genuinely outweigh that cost before switching mid-term.
• You have a very small outstanding balance. If there's not much left to pay off, the legal and admin costs of remortgaging could cancel out any savings you'd make on rate.
• Your credit score has worsened since your last deal. This doesn't necessarily rule remortgaging out, but mainstream lenders may offer less competitive terms. It's worth finding out how to remortgage with bad credit rather than assuming your only option is staying on your current lender's SVR.
• You're planning to sell within the next 12 months. If a move is already on the cards, porting your existing deal to a new property (where the lender allows it) may work out better than paying to remortgage twice in quick succession.
• You have very little equity, or you're in negative equity. If your loan-to-value is very high, or your outstanding balance is close to or above your property's value, your remortgage options will be limited and speaking to an advisor early is particularly important.

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it, so any decision to remortgage - particularly to release equity or consolidate other borrowing - should be made carefully and with a clear understanding of the ongoing repayments involved.

If you're worried about keeping up with repayments or dealing with debt more generally, free and independent guidance is available from MoneyHelper (0800 138 7777).

When your deal ends, you generally have two options: a product transfer (switching to a new deal with your existing lender) or a full remortgage (moving to a different lender). Both can make sense depending on your circumstances.

A product transfer is usually quicker, since there's no legal work and often no new affordability assessment. A full remortgage takes longer but opens up options across a wide range of lenders, which can be worth the extra time if the rates and terms available elsewhere are more competitive.

Whether you choose a product transfer or a full remortgage, remember that your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Any advisor arranging your remortgage should be authorised and regulated by the Financial Conduct Authority - you can check a firm's status on the Financial Conduct Authority register.

Once you know it's time to remortgage, having a clear timeline helps you avoid last-minute stress - or worse, drifting onto your lender's SVR by accident. Here's a straightforward month-by-month action plan to follow.

Your loan-to-value (LTV) - the percentage of your property's value that you still owe - has a big impact on the rates and lenders available to you. If your LTV has dropped into a new band since your last deal, perhaps because your property has increased in value or you've paid down your balance, it can be worth remortgaging even before your current deal ends, early repayment charges permitting.

For example, if your home's value has risen enough to move you from an 80% to a 74% LTV, you'd cross from the 76% to 85% band into the 61% to 75% band - which could unlock noticeably better rate options, even mid-deal in some cases.

Remortgaging comes with its own vocabulary. Here are the key terms worth understanding before you start comparing deals.