Should I remortgage now?

Remortgaging when your current deal ends could save you thousands of pounds a year. But with experts predicting mortgage rates will fall this year, we look at what you need to do and when to get the best deal if you’re asking ‘Should I remortgage now?’

Angela Kerr Director, Editor

Should I remortgage now?

If your current mortgage deal ends in the next six months you should start the remortgage process now.  Speak to a fee-free broker to find the best deal: you can lock in a rate now then keep an eye on mortgage rates to see if a better deal comes up before you commit. Mortgage brokers L&C offer this Rate-Check service for free.

If you’re on your lender’s standard variable rate, you should urgently review your remortgage options because typical SVR rates are significantly higher than the best remortgage deals available.

There are other reasons why you may want to remortgage now such as to fund home improvements or pay off debt, read on to find out more.

Use this online mortgage finder to compare your current mortgage with other deals.

Can remortgaging save me money?

Remortgaging when your current deal ends could save you thousands of pounds a year on your mortgage payments. The amount you can save will depend on the rate on your current mortgage deal vs the mortgage rate you can get.

If you’re coming off a cheap fixed rate mortgage in 2025, your new mortgage is likely to cost you more than your current one. But remortgaging could still save you money because if you do nothing and end up on your lender’s standard variable rate it could cost you significantly more.

Remortgage example if you’re coming off a cheap 5 year fix

The average 5 year fixed rate mortgage in April 2020 was 2.74%. By comparison, the average 5 year fixed rate mortgage in April 2025 is 4.73%.

Here’s an illustration of how much you’ll pay during the initial term at these rates if you borrow £200,000 over 25 years. We also show how much you’ll pay if you do nothing and roll onto your lender’s SVR, using the average SVR of 7.99%.

Remortgage example if you’re coming off a 2 year fix

If you’re coming off a 2 year fixed rate mortgage, the good news is that mortgage rates are now lower than 2 years ago. The average 2 year fixed rate mortgage in April 2023 was 5.35%. By comparison, the average 2 year fixed rate mortgage in April 2025 is 4.87%.

Here’s how much you’ll pay at these rates in the initial term if you borrow £200,000 over 25 years:

So if you’re asking yourself should I remortgage now? it’s vital to get expert advice.

Get fee-free remortgage advice from award-winning brokers L&C. Start online or give them a call today about your mortgage needs.

Remortgaging when your house value has increased

Remortgaging when your house value has increased means you may get access to better rates compared to other deals currently on the market. When you remortgage, the rates you’ll be able to access depend on the LTV – this stands for loan-to-value, and tells you what percentage of the home’s value is borrowed.

So if your house increases in value you’ll own a larger proportion of it. Plus, if you’ve taken out a repayment mortgage, you will have built up equity in it via your repayments too.

In April 2025, the best remortgage rate on a 5 year fixed rate at 90% LTV is 4.45%, while at 80% LTV the best remortgage rate available on a 5 year fixed deal is 4.36%.

What’s happening to UK mortgage rates?

• UK mortgage rates started rising due to the Bank of England‘s series of interest rates hikes which started in December 2021, taking it from its historic low of 0.1% to the recent high of 5.25%.
• We saw a sharp spike in UK mortgage rates in the aftermath of Liz Truss’s disastrous mini-budget in September 2022, and mortgage rates are down since then.
• The Bank of England made the first base rate cut in August 2024 from 5.25% to 5%, and its second in November 2024 taking it to 4.75%. Although mortgage rates actually increased in November 2024 as markets reacted to the potential for interest rates to stay higher for longer.
• Mortgage rates fell in December 2024, despite the Bank of England holding interest rates at 4.75% that month. However, the New Year started with a mixed bag of moves from mortgage lenders: while some mortgage lenders reduced rates, others increased them.
• And despite the latest inflation figures announced on 15 January showing a surprise drop in inflation from 2.6% to 2.5%, with markets less convinced that the Bank of England will cut rates as far and as quickly as had previously been expected, experts are warning that mortgage rates may get worse before they improve.
• However, in March and April 2025, we’ve seen mortgage rates continue to nudge down.

Read more in our guide Mortgage rates forecast: Will rates go down?

Should I remortgage now or wait?

If your current mortgage deal ends in the next 6 months, and certainly if it ends in the next 4 months, you should start the remortgage process now instead of waiting in case mortgage rates go down.

By locking in a rate now you can keep it under review to see if a better deal comes up before you switch to your new deal. Award-winning mortgage brokers L&C offer this Rate-Check service for free

When you’re considering should I remortgage now? start by checking your mortgage deal. Remind yourself of your current rate, check when that deal ends, and penalties for exiting early – often called early repayment charges – and what mortgage rates

Can I fix a new mortgage deal before the end of my current mortgage deal?

Yes. You can start the remortgage process now if your current deal ends within the next six months. You can keep the rate you’ve got under review. While some brokers may charge you to re-check the market, mortgage brokers L&C will do this free of charge so you know you’ll get the best rate available at that time.

Should I move to my lender’s Standard Variable Rate

In most cases, moving to your lender’s standard variable rate isn’t advisable because they can be extremely expensive and you may be able to save by remortgaging onto a better deal.

However, an SVR mortgage might be a good solution for some, for example, if you have a small mortgage. But if you’re asking ‘Should I remortgage now?’, don’t assume what the best option will be. Always speak to a fee-free broker to make sure you’re on the best deal for you.

Should I fix my mortgage?

You should fix your mortgage if you want budgeting certainty that the amount you’ll pay each month on your mortgage won’t change. But if you fix your mortgage, while your repayment amounts won’t increase during the term they won’t go down either if the Bank of England cuts the base rate further.

How long should I fix my mortgage for?

If you’re asking should I remortgage now and want a fixed rate mortgage, you’ll need to decide how long you want to fix for.

Should I fix my mortgage for 2 or 5 years?

Whether a 2 or 5 year fixed rate mortgage is best for you will depend on your circumstances. You may want to fix for 2 years in the hope that mortgage rates will improve in the near future and that you’ll be able to remortgage onto a cheaper deal once your 2 year deal ends. Or you may prefer the security of a 5 year term. Or you might opt for a 3 year fix.

Should I fix for 10 years or longer?

The advantages of fixing for 10 years or longer are that you’ll have the security of knowing how much you’ll pay on your mortgage for a longer period. Plus, you’ll usually pay less in arrangement fees than if you take out multiple 2 or 5 year mortgages. Fixing your mortgage for 10 years or longer also protects you against changes to lending criteria; if a lender tightens up its lending criteria it may make it harder for you to get a mortgage.

However, fixing your mortgage for such a long time means you’ll run the risk of potentially missing out on better deals. Also consider what would happen if you move house? Some mortgage deals are portable which means you can take them with you penalty free if you move to another property. So make sure you check the small print.

Fixed vs variable rate and tracker mortgages

When you’re asking should I remortgage now, how do tracker mortgages and discounted variable rate mortgages compare to fixed rate mortgages?

Tracker mortgage: These go up and down in line with the Bank of England base rate. So if there’s a cut in interest rates, the amount you’ll pay on your mortgage each month would reduce.

Discounted variable rate mortgages: These work in a similar way but instead of tracking the base rate, it tracks the lender’s SVR at a discounted rate.

Some variable rate mortgages come with no early repayment charges which means you could switch to a different deal later down the line without having to pay a hefty penalty. For more information read our guide: What type of mortgage should I get?

Take a look at this online mortgage finder from L&C to see what fixed or variable mortgage deals you are eligible for from over 80 lenders 

Can I remortgage if I’m in the middle of my mortgage deal?

Yes. There are lots of reasons why you may want to remortgage in the middle of a mortgage deal such as to increase your borrowing. But whether it’s right for you will depend on your circumstances:

• Firstly, will you need to pay an early repayment charge if you remortgage? It’s vital you check this because these can be substantial. It’s advisable to talk it through with a fee-free mortgage broker.
• Secondly, you’ll want to consider the rate you can get now compared to the rate you’re currently on.

So if you’re asking should I remortgage now? and you’re in the middle of a mortgage deal before you decide, it’s critical to get advice. A broker can help with the calculations involved in switching and your application. They also have access to deals you can’t get by going directly to the lender and can find the right deal for your circumstances.

Why else should I remortgage now?

Apart from saving money, there are lots of other reasons you may ask ‘should I remortgage now?’

• Funding home improvements: If you’re planning an extension or home improvements, you may be able to fund the project by remortgaging and releasing equity from your home. See how to finance home improvements.
• Paying off debts: Some people remortgage to release equity to pay off debts they’ve accrued. However, if you do this your mortgage will be bigger and you may pay more interest in the long term. So it’s a good idea to get independent financial advice.
• To make overpayments. Another reason why you may want to remortgage is if you want to overpay on your mortgage and your current deal doesn’t let you do this.

What to do before remortgaging

If you’re asking ‘Should I remortgage now’, you’ll also need to make sure you’re in good financial shape before you apply to remortgage. This includes checking your credit rating and taking steps to improve it if necessary, staying out of your overdraft and paying all your bills on time. Find more tips in our guide How to get a mortgage in 6 easy steps.

Why shouldn’t I remortgage now?

There are some circumstances which mean remortgaging is unlikely to be a good option such as:

• If you are in negative equity, it is very unlikely you will find a remortgage deal.

• You’ve had major issues with your credit rating
• If your financial circumstances have changed since you took out your current mortgage such as you’ve stopped working or recently become self-employed.

Should I switch to an interest-only mortgage?

If you’re asking should I remortgage now, you may be considering switching to an interest-only mortgage. If so you’ll need to consider:

• Your monthly payments will be cheaper because you only pay the interest on your mortgage each month, you don’t pay off any of the capital. But an interest-only mortgage will usually cost you more than a repayment mortgage over its lifetime because you pay interest on the full amount throughout.
• The few lenders that offer interest-only mortgages on residential properties often require large deposits (50-to-60%), large annual household incomes (£75,000-to £100,000) or high-value repayment vehicles such as pension pots, the value of which must be 150% of the balance of the mortgage secured.
• Interest-only mortgages can be high-risk. What if your plan to pay back your mortgage at the end of the term doesn’t work? Find out more in our guide on Interest-only mortgages

Should I remortgage now? Use this handy calculator 

If you’re asking should I remortgage now you’ll want to know how much you’ll be able to borrow and what deals are available. To get an idea in a matter of minutes use this remortgage calculator provided by award-winning mortgage brokers L&C.

Check out how much you can save by remortgaging with these online calculators and speak to fee-free mortgage experts today

Should I pay off my mortgage?

If you can afford it, paying off your mortgage may be the best option for you. But there are pros and cons to consider. For more information read our guide Should I pay off my mortgage.

Should I remortgage now? How does it work: video