You can remortgage at any time but there’s no point doing it just for the sake of switching to a different lender. You want to choose a time when there is a definite advantage in moving mortgages.

This may be when

• interest rates are lower than you’re paying at the moment
• you’ve come to the end of a fixed rate mortgage deal
• you have increased the equity in your home

You can switch mortgages when it suits you, you do not have to stay with the same lender for the entire term of the mortgage.

When interest rates are low

Interest rates are always changing, if you’ve had your mortgage for a few years, you’ll probably find there are cheaper rates available, this can save you a lot of money.

You can lock in to a low interest rate with a fixed rate mortgage and know that your repayments will stay the same for the next few years, whatever happens to other rates.

You need to make sure that you are not tied in to an existing fixed rate product and have to pay an early repayment charge for switching before the end of the deal

At the end of your fixed term mortgage

Fixed rate mortgages run for a set term, typically between 2 and 10 years, you then go onto a new rate, usually the lender’s Standard Variable Rate of interest (SVR) which is likely to be higher than your current rate. If you have a fixed rate mortgage at the moment, then you will need to change your mortgage if you don’t want to go you’re your landers standard variable rate.

Even if the interest is the same as you’ve been paying, or higher or lower, depending on what is happening to interest rates at the time, you do not have to stay with the same lender, you should shop around to see what is on offer.

If you want to remortgage before your fixed rate comes to an end, you’ll probably have to pay early repayment charges. Usually this isn’t worth paying but you should consider it if interest rates have dropped since you took out your fixed rate mortgage and you are worried about future interest rate rises.

When the equity in your house has increased

The equity in your house is the difference between what you r house is worth and the outstanding balance on your mortgage.

The ratio of the equity to the mortgage is known as the Loan to Value (LTV). If the price of your house has gone up, your mortgage will be a smaller percentage of the property’s value than it was when you started.

The more equity you own and the lower the loan to value will be and the better the remortgage deal you can get.

The loan to value may have been 90% when you bought the house but over the years you have paid some off the mortgage and the house has gone up in value. As a result, the loan to value may now be down to 75%, you may be able to get a lower rate of interest simply as a result of the improved loan to value.

Obviously, there is no point in remortgaging if you end up out of pocket. You need to work out if you will save money overall by remortgaging.

It is worth checking what’s available because there are a few remortgage deals with low costs and occasionally no charge at all.

We can find you the most cost-effective remortgage and best of all our advice is fee free.