Remortgage Best Deals: How to Secure the Best Rate When it’s Time to Remortgage

Remortgage Best Deals – Plan Early

When your mortgage’s initial term is coming to an end, it’s essential to plan early. Usually lenders will move you from the original rate they enticed you with, onto their Standard Variable Rate – which can be significantly more expensive than your current deal so if you’re remortgaging, it’s best to start early if you’re going to secure the best interest rate for you at the time.

How early should I look for remortgage best deals?

It is now possible to lock in a deal up to 6 months before you need it to start, so you should start looking then (if not a few weeks before). That way you can be sure that you have secured a new mortgage to commence as soon as your existing deal finishes.

But how do I know that a better deal won’t come up in the meantime?

A few years ago, just following the advice above and getting your mortgage in place to make sure you won’t end up on the higher SVR was enough. However, in today’s unpredictable financial market, where interest rates fluctuate at a rate of knots, you might think that it’s worth waiting in case interest rates come down.

HOWEVER

How will you know what mortgage rates are available to you at any point if you aren’t speaking to a Mortgage broker or mortgage lender?

Our expert advice: Lock in a mortgage rate early, then if rates fall, you can still change

If your mortgage deal ends in 6 months, you can secure a future interest rate now. If interest rates go up in the next 6 months, you have a lower rate locked in. But if rates go down, you can check the offer you got earlier and get an even lower rate when you need it.

Real Life Example of decreasing mortgage rates from June to October 2024

The graphic below shows rates released by a lender August to October.   We had submitted our client’s full mortgage application securing an offer in June of 5.18%

Subsequently, every time the lender released a new lower rate, we were able to react swiftly to secure it.  And on one occasion in only 10 days!

Moral of the story… don’t put off starting your mortgage application process.

So how do you go about securing the best deal for your remortgage?

Before your current deal comes to an end, it is likely your current lender will contact you with a “product transfer” offer, which might seem like an easy fix. However it’s widely accepted that this is not the best way to secure the lowest rate for your mortgage:

“‘NEVER just go to your bank for a cheap deal.’ Your existing bank will only give you its range of deals, not the array of alternatives, meaning it’s unlikely you’ll stumble across the best one for you.”

Money Saving Expert

We recommend speaking to an independent, whole of market mortgage broker who can help you explore all of the options available to you. NM Finance constantly monitors the mortgage market, catching real time release of lender’s new mortgage rates. So as soon as you enquire, we will find the best rate for you, once you have secured it you will know that you have the best option at that point. However if rates fall, we will be able to react to secure you the lower rate – ensuring you get the best deal across those 6 months. By starting early, you are giving yourself the best chance of a lower rate.