16th May 2025

Remortgaging in 2025: Is It the Right Time to Switch?

Introduction

With mortgage rates expected to stabilise in 2025, many homeowners are exploring whether now is the right time to remortgage. This guide explains what remortgaging involves, when it might be suitable, and the potential cost implications of switching to a new mortgage deal.

Important: This article is for information purposes only and does not constitute mortgage advice. You should speak to a regulated mortgage adviser before making any financial decisions.

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What Is Remortgaging?

Remortgaging means switching your existing mortgage to a new deal - either with your current lender or a different one. Homeowners typically consider remortgaging to:

• Potentially secure a lower interest rate
• Reduce monthly repayments
• Release equity from their home
• Change the type of mortgage (e.g. from variable to fixed)

Why Consider Remortgaging in 2025?

There may be reasons some homeowners consider remortgaging in 2025, including:

• Forecasts suggesting that interest rates may stabilise following recent volatility
• Lenders potentially offering more competitive fixed-rate deals
• Product incentives that could be available to attract new customers
• The end of initial fixed-rate periods, where borrowers might otherwise move to higher standard variable rates (SVRs)

Note: Market conditions can change, and not all borrowers will benefit from remortgaging. Seek personalised advice.

When Is the Best Time to Remortgage in 2025?

The timing of a remortgage depends on individual circumstances:

• Fixed-rate term ending: Start researching 3 - 6 months before the term ends. Many lenders allow rate reservations in advance.
• On a variable rate: Consider market trends. Fixed deals might offer budgeting certainty.
• Equity release: Remortgaging may enable this, depending on property value and eligibility.

Is It Time to Switch?

Ask yourself:

• ✓ Is your current deal due to expire soon?
• ✓ Could you access a more suitable rate elsewhere?
• ✓ Have your financial circumstances improved?
• ✓ Do you need to borrow more against your home?

If you answer 'yes' to any, it may be worth exploring options. However, affordability assessments and lender criteria will apply.

Potential Benefits of Remortgaging

Remortgaging could help:

• Lower your interest rate (subject to eligibility and market conditions)
• Reduce monthly payments, improving your cash flow
• Access competitive deals from lenders
• Release equity for purposes such as home improvements
• Lock in a rate for budgeting predictability

Risk Warning: Your home may be repossessed if you do not keep up repayments on your mortgage.

Can Remortgaging Save You Money?

Here's an illustrative example (for informational purposes only):

• Outstanding balance: £200,000
• Current Rate: 4.5%
• New Rate: 3.8%
• Estimated monthly savings: ~£85
• Potential 5-year saving: ~£5,100

Actual savings depend on fees, personal eligibility, and lender criteria. Always seek advice before switching.

Key Factors to Consider Before Remortgaging

• Early repayment charges (ERCs): May apply if you exit your current deal early
• Arrangement fees: Some products have fees that reduce or outweigh savings
• Loan-to-value (LTV): Lower LTV ratios typically access better rates
• Credit profiles: Lenders assess your creditworthiness and affordability
• Future plans: If you're planning to move, a long fixed-rate may not suit you

The Remortgaging Process

1. Research: Compare deals 3 - 6 months before your current rate ends
2. Application: Provide documentation such as ID, income, and bank statements
3. Valuation: Lenders may assess your property's current market value
4. Legal work: Solicitors will manage the process if switching lenders
5. Completion: Once approved, you begin your new repayment terms

A straightforward remortgage typically takes 4 - 6 weeks, though timescales may vary.

Can You Remortgage Early?

Yes, but:

• ERCs may apply - often 1 - 5% of your outstanding mortgage
• Savings vs costs: Always calculate whether the switch will benefit you overall
• Product transfers: Some lenders offer rate switches without early repayment fees

Final Thoughts

Remortgaging in 2025 could offer financial benefits - but it's not suitable for everyone. It's essential to compare deals carefully, consider fees, and speak to a qualified mortgage adviser who can assess your personal circumstances.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Need Support?

WIS Mortgages is an FCA-authorised mortgage broker. We offer impartial advice tailored to your financial goals. Contact us today for a free, no-obligation consultation with one of our qualified advisers.

Internal Linking Opportunities:

• First-Time Buyer Mortgages Guide
• Understanding Mortgage Rates
• Fixed vs Variable Rate Mortgages
• How to Improve Your Credit Score for Mortgage Applications

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