Getting the timing right when remortgaging can make a significant difference to how much you save. Leave it too late and you could spend months on an expensive standard variable rate. Move too early and you might face hefty early repayment charges. This guide explains when to start the process and the key triggers that signal it is time to switch.
For a full overview of the remortgage process, read our complete guide to remortgaging.
What happens if you stay on your lender’s standard variable rate?
You will almost certainly pay significantly more -- the SVR is typically 2 to 4 percentage points higher than a competitive deal, which on a £200,000 mortgage could cost you over £4,000 extra per year. When your initial mortgage deal expires — whether it is a two-year fix, three-year fix, or five-year fix — your lender will move you onto their standard variable rate (SVR).
For example, if you were paying 4.5% on a fixed deal and your lender’s SVR is 7.5%, that is a 3 percentage point increase. On a £200,000 mortgage with 20 years remaining, that could mean paying around £350 more per month. Over a year, that adds up to over £4,000 in additional interest. Try our mortgage calculator to see how switching rates could affect your monthly payments.
The SVR can also change at any time at the lender’s discretion. Unlike a tracker rate that follows the Bank of England base rate, there is no obligation for lenders to pass on base rate reductions to SVR customers. This makes budgeting unpredictable and almost always works against you.
How far in advance should you start looking to remortgage?
Start looking three to six months before your current deal expires. Most lenders will allow you to lock in a rate up to six months in advance, and the rate is typically held without commitment until completion, so there is no risk in starting early.
- 01
6 months before
Start researching deals and speak to a broker. Most lenders let you lock in a rate this early.
- 02
3–4 months before
Submit your remortgage application. This allows time for valuation, legal work, and any issues.
- 03
1 month before
Completion is finalised and your new deal is ready to start the day your old one expires — no SVR gap.
This gives you several advantages. First, you secure a competitive rate before your deal ends, so there is no gap where you are paying the SVR. Second, if rates fall during the holding period, you can usually switch to an even better deal before completion without penalty. Third, it allows plenty of time for the application, valuation, and legal work to be completed without being rushed.
If your deal end date is approaching and you have not started looking, do not panic. Even a few weeks is usually enough time to get a new deal in place, particularly if you work with a broker who can fast-track the process.
| Factor | Remortgage | Product Transfer | Stay on SVR |
|---|---|---|---|
| Interest rate | Best rates across the whole market | Competitive, but limited to current lender | Highest — typically 2–4% above deal rates |
| Application process | Full application, valuation, legal work | Usually no valuation or legal work needed | No action required |
| Time to complete | 4–8 weeks | Often same day or within days | Immediate (happens automatically) |
| Fees | May include arrangement, valuation, and legal fees | Usually no fees (or lower fees) | No fees |
| Credit check required | Yes — full affordability assessment | Sometimes lighter checks | No |
| Can release equity | Yes | Sometimes, depends on lender | No |
| Best for | Borrowers wanting the best rate or equity release | Quick, hassle-free switch with decent rate | Nobody — almost always worth switching |
Is it worth remortgaging early and paying an early repayment charge?
It can be, if the savings on a new deal outweigh the early repayment charge (ERC). In some circumstances, it may be worth remortgaging before your current deal expires. This could make sense if:
- Interest rates have fallen significantly since you took out your mortgage, and the savings over the new deal period outweigh the ERC
- Your property has increased substantially in value, moving you into a lower LTV band that qualifies for much better rates
- You need to release equity urgently for an important purpose such as essential home repairs or debt consolidation
- Your ERC is small or close to expiring (ERCs typically reduce each year during the deal period)
A mortgage broker can run the numbers for you to determine whether breaking your deal early makes financial sense after accounting for all costs. For more on what you will pay, see our guide to remortgage costs and fees.
What other reasons might trigger a remortgage?
Base rate changes, a rise in your property value, improved personal circumstances, or major life events like divorce can all be good reasons to remortgage. Beyond the end of your deal period, here are other situations that might prompt a remortgage:
- Base rate changes: If you are on a tracker rate and the Bank of England raises rates, you might want to switch to a fixed rate for payment certainty.
- Change in circumstances: A salary increase, paying off debts, or improvements to your credit score could qualify you for a better deal.
- Property value increase: If your home is worth more than when you last mortgaged, your LTV may have improved, unlocking lower rates.
- Life changes: Divorce, inheritance, or other major events may require restructuring your mortgage.
Whatever your reason for considering a remortgage, speaking to a broker can help you understand whether now is the right time and which deals are available. You can get started by completing our short online form.
- Start looking for a new deal 3–6 months before your current one expires to avoid falling onto the SVR.
- The SVR can cost you £4,000+ per year more than a competitive deal — switching is almost always worth it.
- Most lenders let you lock in a rate up to 6 months ahead, with no commitment if a better deal appears.
- Remortgaging early can make sense if rate savings outweigh the early repayment charge — ask a broker to run the numbers.
- Life changes like a salary increase, property value rise, or base rate shift can all be good triggers to remortgage.