To Remortgage, or not to Remortgage?

Martin Green, Director, J&M Green Mortgage Services Ltd

Independent mortgage adviser Martin Green explains why timing your remortgage could make all the difference in today’s unpredictable market

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My name is Martin Green from J&M Green Mortgage Services Ltd on Allerton Road. I’m an independent mortgage adviser with 20 years of experience, and my firm has completed well in excess of 10,000 mortgages over the years.

When it comes to remortgaging, the main driving forces that determine the rate you get often simply come down to timing and geopolitical situations, no matter how prepared you are for your deal ending. Prior to the Middle East conflict, it was widely expected that we would have two or three Bank of England base rate cuts in 2026, so no matter how well you plan ahead, the outcome at renewal can still shift unexpectedly and rapidly – just as we’ve seen through March with multiple rate rises across all lenders.

Secure a deal now – or wait it out?

When your current mortgage deal is nearing its end, you have two options: you can remortgage to a new lender or apply for a product transfer with your existing one. If you choose to remortgage, you can start about six or seven months before your deal ends, as most remortgage offers last for six months. This gives you peace of mind and potentially better rates than your current lender could offer, however, it involves more paperwork, possible costs, and a full assessment of your circumstances and property.

As soon as your remortgage application is submitted, you can rest easy knowing your rate is secured – if rates rise you are protected, and if they reduce, you can change product right up until the final weeks before completion. Furthermore, some lenders allow you to reserve a product up to three months before submitting your application, while others offer mortgage extensions – meaning, in practice, you could secure a rate as much as nine months before your current deal ends.

Product transfer: simple, but more limiting

On the other hand, a product transfer with your current lender is far more straightforward, but is usually only available three or four months before your current deal ends, so it leaves you more vulnerable to rate rises. It also restricts you to your own lender’s products, rather than allowing you to assess the whole market for the best deal.

Coupled with this is an increased risk of being subjected to rate rises, although with most high street lenders, product transfer options are usually very competitive. Just like with a remortgage, you can secure a deal, then if rates decrease, change that deal right up until a week or two before completion of the product transfer.

It’s all a question of peace of mind. None of us can know for certain what the future will bring for interest rates – the last five years have illustrated this with COVID-19 and global conflicts. Therefore, it can be prudent to pay a little more to secure a remortgage as early as possible, rather than biding your time for your own lender’s current deals, which could increase while you are waiting to access them.

Get in touch on 0151 230 0909 or visit www.gmsltd.co.uk for more information about your remortgage options

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