How to Align Your Mortgage Terms with Your Current Financial Position

If you’re wondering whether now is the right time to review your mortgage, the answer could very well be yes. With fluctuating interest rates and life changes affecting your finances, reassessing your mortgage terms can be a smart move, one that might even save you money or offer a better fit for your current lifestyle.

Why Remortgage?

Remortgaging simply means switching your existing mortgage to a new deal, either with your current lender or a new one. Though the idea might sound overwhelming, the benefits of remortgaging, when done right, can be substantial. You might reduce your monthly payments, shorten your loan term, or gain more flexibility with your repayments.

Consider How Your Circumstances Have Changed

Life moves on, and your financial situation often changes with it. A new job, self-employment, growing your family, or even a pay rise can all influence what you’re eligible to borrow. On top of that, if your home has risen in value since you bought it, you might now qualify for better rates thanks to a lower loan-to-value (LTV) ratio.

On the other hand, if you’ve taken on more debt or had changes in income, it’s equally important to understand how this could affect your options. Either way, reviewing your mortgage is a chance to realign with your current reality.

Timing is Key

We recommend starting your remortgage journey around 6 to 12 months before your current deal ends. This gives you time to assess your options, gather documentation, and secure a new deal before moving onto your lender’s standard variable rate, which can often be more expensive.

Don’t Forget the Costs

While securing a new deal is the goal, it’s important not to overlook the exit costs from your current mortgage. Lenders may charge an admin or ‘exit fee’, sometimes up to £300. More significantly, early repayment charges (ERCs) can apply if you leave your mortgage during a fixed, tracker, or discounted rate period. These are often calculated as a percentage of your remaining balance and tend to decrease the closer you get to the end of the term.

Still, in a falling interest rate environment, refinancing early might save you more than it costs. This is where professional advice becomes invaluable.

Market Competition and Fixed Deals

Fixed-rate mortgages remain the go-to choice for many UK homeowners. They offer peace of mind with predictable payments, usually over a 2- or 5-year period. Once your fixed term ends, you’re typically free to switch without penalties.

Since lenders frequently update their deals every few months, keeping an eye on the market, or having a broker do it for you, can help you catch a better rate when the time’s right.

Make Your Property Work for You

If your home’s value has increased, your LTV will drop, which could unlock access to more competitive rates. It’s worth giving your home a bit of attention before it’s valued, basic maintenance, tidy presentation, and a fresh coat of paint can all influence a surveyor’s valuation.

Ready to Take the Next Step?

Remortgaging is about more than just switching deals, it's about ensuring your mortgage fits your current lifestyle and future plans. At Mayfords, we understand how personal your property journey is. That’s why our experienced mortgage team is here to guide you every step of the way, from assessing your eligibility to comparing deals tailored to your needs.

Whether you’re planning ahead, coming to the end of a fixed-rate deal, or simply curious about better rates, it pays to get expert advice.