Can you remortgage at any time?
You can remortgage at any time. But if you're not at the end of your fixed or discount rate term, you might have to pay an early repayment charge. Most people remortgage when they get to the end of their fixed or discount rate term as this is when your mortgage might stop being a good deal.
Yes, you can remortgage whenever you like, however, If you are currently tied into your mortgage deal for a set amount of time (commonly 2, 3 or 5 years) then remortgaging before that end date may lead to a penalty called an early repayment charge.
How early can you remortgage? You can remortgage at any time but there's no point doing it if it's not likely to benefit you in the long run. You want to choose a time when there's a positive benefit to moving your mortgage.
You may find it difficult to remortgage if you've had a drop in income, recently changed jobs, become self-employed, or are facing redundancy. Other circ*mstances can also have an impact. For example, if you start a family or go on maternity or paternity leave, this can affect your remortgage application.
In most cases, you may refinance a conventional loan as soon as you want. You might have to wait six months before you can refinance with the same lender. But that doesn't stop you from refinancing with a different lender. An exception is cash-out refinances.
Most people want to avoid going onto an SVR, so they switch to a new deal – also known as remortgaging. You can search the whole market again and look for the best deal from all the available lenders. But you can also stick with your current lender, and get a new deal with them – that's called a “product transfer”.
Remortgaging when your current deal is ending
To avoid this hike in payments, it's wise to start looking for a new mortgage deal 3-4 months before your current one expires.
Most lenders will let you borrow up to 4.5x your annual income. You can remortgage for the same amount you have outstanding on your current mortgage.
Remortgaging is getting a new mortgage deal on your home from a new lender. You'll need a mortgage in place already to be able to remortgage. Usually, you'll do this at the end of your current mortgage deal. But there are times where you might remortgage sooner.
The remortgaging process typically takes from 4 to 8 weeks after you apply. For most applications, you'll need to speak to one of the lender's mortgage advisers, who are qualified to advise you about the best deal for your needs.
Can a lender refuse to renew mortgage?
Renewal denied by your current lender
If anything about your finances concerns your current lender, it can choose not to renew you.
Yes, you can remortgage multiple times over the course of your mortgage term as technically, there's no limit to the number of times you can remortgage. Some people choose to remortgage every time they reach the end of a fixed-rate deal. However, fixed-rate mortgages won't be right for everyone.
Can Remortgaging With My Current Lender Damage My Credit Score? If you are switching to a new deal to prevent yourself from being moved onto your lender's SVR and there are no material changes (changes to your mortgage term or mortgage balance), then it's unlikely your lender will assess your credit.
The Fed raised the rate 11 times between March 2022 and July 2023 to combat ongoing inflation. After its December 2023 meeting, the Federal Open Market Committee (FOMC) predicted making three quarter-point cuts by the end of 2024 to lower the federal funds rate to 4.6%.
| Product | Interest rate | APR |
|---|---|---|
| 30-year fixed-rate | 6.643% | 6.728% |
| 20-year fixed-rate | 6.425% | 6.532% |
| 15-year fixed-rate | 5.848% | 5.984% |
| 10-year fixed-rate | 5.723% | 5.920% |
| Product | Interest Rate | APR |
|---|---|---|
| 10-Year Fixed Rate | 6.40% | 6.49% |
| 5-1 ARM | 6.51% | 7.86% |
| 10-1 ARM | 7.01% | 8.00% |
| 30-Year Fixed Rate FHA | 6.82% | 6.87% |
You could save money (at least initially)
By sticking with the same lender, you may not need to pay a valuation fee and you may not need a solicitor, so you'll save on those costs. You might also avoid paying a redemption fee.
Increasing – or topping up – your existing home loan can be an effective way to get access to extra funds. You may want to use the money to renovate or redecorate your home and increase its value, or you could be looking to consolidate all your debts into one.
You can remortgage at any time. But if you're not at the end of your fixed or discount rate term, you might have to pay an early repayment charge. Most people remortgage when they get to the end of their fixed or discount rate term as this is when your mortgage might stop being a good deal.
You'll also need to pay some fees and charges when you remortgage. Make sure you think about whether remortgaging is right for you. You might find that the potential savings outweighs the costs of any fees, but this isn't always true.
What is the quickest way to remortgage?
The simplest and fastest way is to remortgage with the same lender – this is known as a product transfer. Because the new mortgage deal is with your current lender, the eligibility and affordability checks are not so stringent.
Mortgage lenders typically base loan size on a maximum LTV that they are willing to lend, typically between 75-85% when remortgaging to release equity. So this would be the maximum percentage of the value of your home that they will allow you to borrow once the additional borrowing is added to your original loan.
How much equity do you need to remortgage? For a regular remortgage, where you're just switching the same amount to a new lender, deals are usually available if you have 10% or sometimes 5% equity.
A home equity line of credit, or HELOC, is typically the most inexpensive way to tap into your home's equity.
Sell and Downsize: If you're willing to move to a smaller or less expensive property, selling your current home can release equity without the need for remortgaging. Shared Ownership: This involves selling a portion of your property to release equity, while continuing to live in your home.
