It’s quite likely that when you took out your mortgage, you fixed the interest rate for a set number of years. When that fixed deal comes to an end, you’ll automatically be moved to your lender’s standard variable rate (SVR).
The SVR is usually higher than any fixed mortgage deal, which will result in higher monthly payments. The good news is that with a little bit of forward planning and the help of mortgage experts like the team here at Doctors Mortgages Online, you can lock into a new fixed deal and avoid the eyewatering SVR.
What Is Remortgaging?
To put it simply, remortgaging just means switching to another mortgage when your fixed-term ends. If you do it right, you might be able to get a deal that’s better suited to your circumstances. For example, it could help you pay off your mortgage quicker, extend the term so it’s more manageable, get you a better interest rate, or bring down your monthly payments.
In 2026, it’s estimated that around 1.8 million* fixed-rate mortgage deals are due to expire. Many people affected would have locked in at the lower post-covid mortgage rates of around 2%*, which means that it’s almost impossible that they will be able to find a similar low deal today.
For these people, it’s even more important to take remortgaging seriously to find the best option available to them in the current economic climate.
What Are Your Options For Remortgaging?
Around three to six months before your fixed rate ends is a good time to start exploring your mortgage options to avoid paying more than you need to on an SVR.
There are two options when you remortgage:
- Stay With Your Current Lender On A New Deal
Your current lender will offer you a product switch to a new deal on a new rate with them. This has its benefits as you get to stay with the same lender. You won’t need to reapply for the mortgage or undergo any financial checks to prove your affordability. Instead, you simply switch to the new deal with them. The lender would have committed to you when you originally took the mortgage out, which is why you don’t need to go through any extra assessments. Sticking with the same lender can be a good choice if your circumstances have changed and you’re not sure you’d be accepted for a remortgage with another one.
- Change Lenders With A Full Remortgage
You might be able to find lower rates with another lender. In this case, you’ll need to reapply and go through all of the affordability checks that you did when you took out your first mortgage. Although this might seem like a hassle, it’s definitely worth it in the long run. When you turn to a specialist broker like us, we can handle the remortgage application process for you so you don’t need to get bogged down in annoying paperwork.
Why It Pays To Shop Around
Scouring the market can help you find a mortgage deal that suits you better. At this point, the entire mortgage is renewable. If you are one of those people who bought post-covid on a low rate, you might be able to extend the whole mortgage term to help spread the costs, or if you’ve been overpaying, you may even be able to reduce your term, for example.
Our team has access to the full mortgage market and can help you understand the options available to you, whether you are looking for a two-, three-, or five-year fixed-term mortgage. What’s more, our service is completely free so don’t hesitate to contact us about remortgaging.
*https://www.mortgageable.co.uk/mortgages/history-of-mortgage-interest-rates/
