When can you remortgage?

If you can afford it and meet the criteria of the new lender (or your current lender if you’re staying with them), you can remortgage at any time. You don’t necessarily have to wait until your existing deal ends, but there’s usually a catch.

Remortgaging during your current fixed term may result in a significant Early Repayment Charge (ERC). 

What’s an ERC? It’s a fee that most fixed-rate mortgages include (though not all), typically ranging from 1% to 5% of your mortgage balance. This charge applies if you overpay beyond a certain limit, repay your mortgage early, or switch lenders before your fixed term ends.

Before you decide to remortgage mid-term, it’s essential to check the fine print on your mortgage deal to understand any potential ERCs, as well as the setup costs for a new mortgage. You’ll want to make sure that switching will save you money in the long run (it very well could!), or if it’s better to wait until your fixed term expires.

By chatting with a Turtle mortgage expert, we can help you figure out if switching early will save you money or cost you more in the short or long term. If it’s in your best interest to switch, we will handle the entire remortgaging process for you.

Are you remortgaging to release equity for renovations? 

Great! But bear in mind the bigger picture: when you unlock the cash in your property, you’re essentially borrowing more, which means your monthly repayments could rise, and you may pay more interest over the life of your mortgage.

It’s worth comparing whether you’d end up paying more in mortgage interest on the extra borrowing over, say, 20 years, than you would on a home improvement loan with a higher interest rate over 5 years. If you can manage higher repayments in the short term, a loan might make more sense for funding that dream kitchen or loft conversion.

When should you remortgage? 

Knowing when to start the remortgaging process gives you the best chance of securing a great deal, and helps you avoid your lender’s Standard Variable Rate (SVR). Ending up on your lender’s SVR could mean paying up to twice the interest rate you were on before, so we definitely don’t want that!

So, when should you remortgage? As a general rule, we recommend beginning the process around six months before your current deal ends. This gives you plenty of time to compare options, calculate costs, and allows a buffer for your remortgage application to be processed and approved.

When a lender offers you a mortgage, you’ll typically have between three and six months to accept it, so you can time it perfectly for when your current deal expires.

How long does it take to remortgage? 

Finding and applying for the right mortgage deal usually doesn’t take long, but you must account for what happens once your application is submitted. There’s paperwork to complete, processes to follow, and you might need a revaluation of your property if you’re switching lenders.

On average, the entire process takes about 4-8 weeks, although it can sometimes take longer. It’s always best to err on the side of caution and give yourself plenty of time to complete the remortgaging process.

When shouldn’t you remortgage? 

While remortgaging can be a great way to save money, there are a few situations where it might not make sense. These include:

• High early repayment charges
• A small remaining mortgage balance
• Remortgaging to consolidate debt

Here are some additional situations where you may want to reconsider:

If you’ve recently changed jobs or employment status:

• If you’re about to start a new job, even with a higher salary, you may find it harder to qualify for a new mortgage. Lenders view job changes as risky, especially if there’s a probationary period.
• If you’re about to go on maternity or parental leave, lenders will likely want confirmation of your return to work and your salary. Some may even request details about future childcare costs.
• If you’ve gone self-employed, many lenders require at least one year’s worth of audited accounts to prove your income, and some may ask for up to three years.

These scenarios don’t mean you can’t remortgage, but they do make it more difficult. Timing and the right advice are key. You can speak to a Turtle mortgage expert for guidance specific to your situation.

Your credit history is poor:

Before applying, it’s a good idea to check your credit report. This can be done for free with X.  This will give you a clearer picture of your current credit standing and what you might need to do to improve it.

Even with bad credit, remortgaging is possible. A missed mobile phone bill from three years ago probably won’t prevent you from finding a new deal, but something like a County Court Judgement (CCJ) could limit your lender options.

Your best option may be to take a little time to improve your credit. Most reports only show the past six years of financial activity, so with patience, you could improve your chances of securing a better deal.

You can check your credit score for free by using Checkmyfile.

Can Turtle help me decide when to remortgage?

Absolutely! We know that your mortgage is one of your biggest monthly expenses. If your goal is to reduce your monthly costs by remortgaging, timing is everything.

When you remortgage with Turtle, we’ll help you figure out when your current deal ends, when your new deal should start, and whether it’s more cost-effective to stay with your current lender or switch. Then, we’ll take care of all the paperwork to ensure a smooth transition to your new mortgage.

Sounds good, right? All you need to do is book a call with us.