When should I start looking for a remortgage?
You should start to consider a remortgage up to 6 months before your current mortgage deal coming to an end.
Although this might seem a lot, there are several good reasons for being ahead of the game. However, you have never missed the boat. If you are getting very close to the end of a fixed rate, or already crossed to the point where you are being charged a higher rate, quick action can limit the additional costs you will suffer.
The first reason for arranging a remortgage as early as possible is to make sure you have a seamless switch from the old mortgage to the new rate. This ensures you avoid the existing rate coming to an end and having to suffer increased interest. Historically that only took a few weeks, but many lender administrators and solicitor’s staff are still working from home. This makes the whole process much longer and adds to the risk of not completing on time.
Another reason for remortgaging early is that a mortgage offer usually lasts up to six months. You could avoid potential increases in mortgage interest rates by fixing your future rate several months in advance. Also, in case transferring to a new rate with your existing lender is more cost effective than a remortgage, some lenders will allow you to transfer to a new product 3 months early without any penalties.