When is a good time to remortgage?
Knowing the right time to remortgage can be difficult, as there is no definitive time-period when you should remortgage. However, you should look to remortgage to a new deal when your current introductory mortgage rate is close to coming to an end, but not before.
Almost all mortgages have an introductory offer that lenders use to attract new customers. This offer usually lasts for the first two to five years of your mortgage however, this period can be longer, shorter or somewhere in between.
But it’s when the offer on your mortgage ends is when things can start to get expensive for you, as this is when your mortgage rate will revert to the lender’s standard variable rate – which will almost always be higher than what you were paying.
Which is why it can be highly beneficial to remortgage, as it can give you access to a better deal and it could potentially save you from paying hundreds of pounds extra in interest each month over the next two years or five years.
Why should you remortgage and how long does it take?
Generally, you should start looking for a remortgage deal around three months before your current one ends. As this will give you enough time to do your research and complete the application process in good time to ensure that your remortgage deal begins, just as your last deal ends.
Remortgaging to a new lender can take up to two months to complete, but if you are switching from the same mortgage provider to another one of their products, then it could only take one month.
Remortgaging can provide you with an opportunity to keep paying your mortgage at the introductory rate on a new deal, for longer.
When it comes to remortgaging, it’s important to give yourself more time than you think you might need, as it will give yourself more time to weigh up your options and calculate all the costs involved.