Remortgaging in 2025: Timing Your Switch for Maximum Savings
With mortgage rates beginning to fall, homeowners are questioning whether now is the right time to remortgage. The answer depends on your current deal, remaining term, and personal financial situation. Those coming off fixed-rate deals in the next 6-12 months may particularly benefit from acting sooner rather than later.
Timing Your Remortgage
The remortgaging process typically takes 6-8 weeks, so starting early ensures you can secure today's rates for future completion. Early repayment charges (ERCs) can be substantial, but in some cases, the long-term savings from switching may outweigh these penalties. Professional mortgage advisors can calculate whether breaking your current deal makes financial sense.
Product Transfers vs Full Remortgage
Consider product transfer options with your existing lender as an alternative to full remortgaging. While these may offer convenience and speed, they don't always provide the most competitive rates. Shopping around and comparing the whole market remains the best strategy for maximising your savings and finding the most suitable mortgage product.
Key Considerations for 2025
- Interest Rate Trends: Following the Bank of England's recent rate cut, rates may continue falling through 2025
- Fixed vs Variable: Consider rate stability vs potential savings
- Early Repayment Charges: Calculate break-even point using a mortgage calculator
- Property Value: Recent valuations may affect loan-to-value
- Income Changes: Employment status affects affordability
The improving housing market conditions and competitive lender deals make 2025 an opportune time to review your mortgage arrangements.
Steps to Remortgage Successfully
- Review your current mortgage terms and ERCs
- Check your credit score and address any issues
- Get property valuation estimate
- Compare whole-of-market deals
- Apply 3-6 months before current deal ends
Related: Read Which?'s remortgaging guide