How To Increase Your Affordability So You Can Borrow More | UK Mortgages

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My name’s Gemma, and here at WIS, we talk about all things relating to money, mortgages, and positive money mindset.

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On today’s episode of “Let’s Talk Money and Mortgages”, we’re joined once again by Ifthi — a trained accountant and mortgage advisor with over 11 years of experience, and one of the founding directors here at WIS.

What Is Remortgaging?

Gemma: Let’s start with the basics — what is remortgaging?

Ifthi: A remortgage happens when your fixed-rate mortgage deal ends and you want to move onto a new deal instead of your lender’s standard variable rate (SVR), which is usually much higher.

Let’s say you take out a 25-year mortgage with a two-year fixed deal. After two years, your deal expires, and your mortgage automatically switches to the standard variable rate.

To avoid paying that higher rate, you can remortgage — meaning you apply for a new deal with either your existing lender or a new one.

You’re not changing the term of your mortgage (it might still be 25 years total), but you’re securing a better interest rate for the next deal period (two, three, or five years, for example).

When Is the Earliest You Can Apply for a Remortgage?

Gemma: This is the big question everyone wants to know — when is the earliest you can apply for a remortgage?

Ifthi: That’s a very good question, especially now with rising interest rates — people are understandably anxious and want to act early.

Normally, you can apply for a remortgage three to four months in advance of your deal ending. That allows enough time to find a good deal, complete the legal work, and switch smoothly when your current rate finishes.

However, with rates increasing, many people are asking about applying six to eight months early. Here’s the issue:

• Most mortgage offers are only valid for six months.
• So, if you apply eight months in advance, your offer might expire before your current deal ends.

That’s why the earliest realistic time to remortgage is six months before your deal ends.

That said, in some cases, it might still be worth reviewing earlier — even if there’s a penalty for breaking your deal.

For example:

If you’re on a 5% rate with a 1% early repayment charge, and you can switch to a 3% rate, you might save money overall — because 3% + 1% (penalty) = 4%, which is still lower than 5%.

So it’s always worth reviewing your mortgage annually with your broker, as there may be better deals available before your current one ends.

Offer Expiry Dates and Renewals

Gemma: You mentioned mortgage offers are valid for six months — but we’ve noticed recently that lenders are no longer renewing offers. What does this mean for borrowers?

Ifthi: Yes, that’s a really good point.

In the past, lenders often allowed borrowers to extend or renew their mortgage offers if they expired before the current deal ended. Recently, however, we’ve seen a trend where some lenders refuse to renew offers.

This can create problems if your offer expires too early, especially if rates have gone up in the meantime.

So it’s essential to:

• Check your offer’s expiry date carefully.
• Make sure it doesn’t expire before your current deal ends.

Also, some lenders no longer show the expiry date on the KFI (Key Facts Illustration) or offer documents, so you may have to ask the lender or your advisor directly to confirm it.

Applying too early can backfire if the offer expires — so timing is really important.

Longer Fixed-Term Deals

Gemma: We’re seeing more lenders offering longer-term fixed rates — seven, ten, even eleven years. People are wondering: how long should I fix my rate for?

Ifthi: It really depends on your personal circumstances. There’s no one-size-fits-all answer.

Let’s look at two examples:

Example 1: If you have children and plan to move house in a couple of years (for schools, for instance), a five-year fix might not suit you. You’d face early repayment charges (ERCs) — typically reducing by 1% per year — so even if you leave in year three, you could still owe a 3% penalty.

Example 2: If you’re in your 50s, settled, and not planning to move, a five- or ten-year deal might make sense for stability.

In general:

• Shorter deals = more flexibility
• Longer deals = more stability, but less flexibility and often higher rates

So it’s important to match your mortgage term with your life plans. Always discuss this with an advisor before making a decision.

What Can You Do When Interest Rates Are Rising?

Gemma: With interest rates on the rise, is there anything customers can do differently to protect themselves?

Ifthi: Yes, absolutely. Here are some key tips:

Act Quickly:

As soon as you know your deal is ending, start your remortgage process. Rates can change overnight — sometimes banks send rate change notices with less than a day’s warning. If you wait too long, you could miss out on lower rates.

Apply Early (but not too early):

You can usually apply six months in advance. If rates fall later, you can switch to a lower one before completion — but if rates go up, you’ll have already locked in a better deal.

Plan Ahead:

Brokers recommend speaking to an advisor a year before your deal ends. This allows time to:

• Review your loan-to-value (LTV)
• Save extra funds (sometimes even £5,000 more can help you reach a better LTV bracket)
• Prepare all documents early

Prepare Documents in Advance:

• Check your credit score
• Gather your income proofs and bank statements
• Make sure there are no surprises or delays when applying

This is crucial because lenders sometimes give brokers only a day’s notice before rate changes.

Be Aware of Global Impacts:

Factors like inflation and global conflicts (for example, the ongoing war) are influencing interest rates. So it’s not just a UK issue — and rate rises could continue for some time.

Check Online Rates Carefully:

Online calculators can be misleading — not all rates shown will apply to your specific situation. Always confirm with a broker to make sure you’re seeing realistic options. Many brokers (including WIS) are fee-free, so you can get advice without paying extra.

Final Advice

Gemma: Thank you, Ifthi, for sharing these insights!

Just a reminder — these points may or may not apply to everyone. If you’re unsure, please speak to a broker.

If you don’t already have one, WIS is always happy to help — our contact details are below.

Important Reminder: A mortgage is secured against your home or property. It may be repossessed if you do not keep up with repayments.

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