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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.
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.
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
Research: Compare deals 3 - 6 months before your current rate ends
Application: Provide documentation such as ID, income, and bank statements
Valuation: Lenders may assess your property's current market value
Legal work: Solicitors will manage the process if switching lenders
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.
WIS Mortgages and Protection Services is a trading name of WIS Contractor Mortgages
Limited who
is authorised and
regulated by the Financial Conduct Authority (FCA). The FCA regulates financial services in the UK, and you can
check our authorisation and permitted activities on the Financial Services Register by visiting the FCA's website
https://register.fca.org.uk/ or by contacting the FCA
on 0800
111 6768. Our Financial Services Register number is
824411
Some Buy to Let mortgages are not regulated by the Financial Conduct Authority therefore you may not have the
same consumer protection with these mortgages as they are considered a business transaction.
Registered in England and Wales with company registration number 11496588 the registered address is 4 Imperial
Place, Maxwell Road, Borehamwood, England, WD6 1JN.
We are a credit broker, not a lender and information on our charges can be found here
The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore
targeted at consumers based in the UK.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage
repayments