The main reason homeowners remortgage is because they are reaching the end of their lender’s initial fixed rate or discounted period and they want to save money. This is usually two to five years into the mortgage term, when the interest rate reverts to the lender’s standard variable rate (SVR), which is generally higher and will cost you more each month.

While the potential to save money every month is a common motivator, there are other possible reasons and triggers for remortgaging. These range from wider economic factors to changes in your financial circumstances, such as:

• You want to lock in today’s interest rates, as you’re concerned about future rises.
• Interest rates have fallen since you first got your mortgage, and you want to take advantage of a cheaper deal with a lower interest rate.
• You plan to release equity from your property to help pay for home improvements or other large expenses.
• You want to remortgage to pay off other debts. If you’re considering this, talk to a financial adviser or a debt adviser before going ahead.
• Your property has gained in value over time and after a few years of mortgage repayments you own more equity, which means you can access lower loan-to-value (LTV) deals and better rates.
• You prefer to switch to a longer fixed interest period for peace of mind, perhaps five years instead of your current two-year fix.
• You no longer want to be locked into a lengthy fixed-rate period and would prefer a shorter fixed rate, or one that varies alongside interest rate movements.
• You would like to move to a more flexible mortgage that takes account of your savings, such as an offset mortgage, or allows you to make overpayments without penalties.

If you’re looking to remortgage, don’t leave it until the last minute – ideally, give yourself three to six months before your deal ends to consider your options as the process can be lengthy depending on what you are looking to do.

If you’re not sure if it’s right for your situation, or when to do it, speak to us for advice.