Early Remortgaging Strategy | In today’s volatile market, waiting for your mortgage deal to expire can cost you. At Connect Mortgages, we believe in staying one step ahead through proactive remortgaging, an approach designed to protect your finances, even before your current deal ends.
What Is Proactive Remortgaging?
Proactive remortgaging is the strategic process of reviewing your mortgage options well before your current rate expires. This approach gives you time to:
- Secure better rates before increases
- Lock in deals early with selected lenders
- Avoid the high cost of Standard Variable Rates (SVR)
- Plan confidently without last-minute surprises
Explore our full guide on remortgage options to see how early planning can work in your favour.
Why Timing Matters More Than Ever
Mortgage rates can change quickly and often without warning. By reviewing your mortgage up to 6 months before your term ends, we can help you lock in competitive rates ahead of potential rate increases. If your circumstances have changed (e.g., self-employment, credit history, or income), early review also gives us time to tailor your new mortgage application for a better outcome.
Reduce Your Mortgage Term with Smart Remortgaging
While many homeowners remortgage to secure better interest rates and lower monthly repayments, another powerful benefit is the opportunity to shorten your overall mortgage term. This approach can lead to significant long-term savings and help you become mortgage-free faster.
How Does Shortening Your Term Work?
When you remortgage at a lower interest rate, you have the flexibility to increase your monthly repayments without a large jump in cost. Rather than simply lowering your monthly payment, you can use the savings to reduce your mortgage balance more aggressively.
Although many borrowers initially focus on keeping payments as low as possible, a more strategic view considers the total cost of borrowing. Choosing to pay slightly more each month while benefiting from a lower rate can save thousands in interest over the life of your mortgage.
Fixed Rate Expiry: A Chance to Reassess
Most lenders offer an initial fixed-rate period of two to five years. Once this ends, you may be moved onto the lender’s Standard Variable Rate (SVR), which is usually higher and less predictable. This is the ideal time to review your options and consider remortgaging.
By acting before your fixed rate expires, you can:
- Avoid rising SVR costs
- Lock in a better rate
- Adjust your repayment term
- Build equity in your home faster
If you’re unsure how to time your remortgage review, our expert team can help you plan ahead with a proactive remortgaging strategy. You can also “Find Mortgage Advisers” for personalised guidance on shortening your term.
Growing Income? Grow Your Mortgage Overpayments
As your income increases over time, your ability to contribute more toward your mortgage improves. Even small monthly payments can significantly reduce your mortgage balance and shorten your term.
Many of our clients start with longer terms for affordability and gradually reduce them as their financial situation strengthens. We help ensure your mortgage adapts to your goals at every stage.
Looking to combine this with mortgage protection or other financial safeguards? Our advisers can help create a tailored plan that secures both your home and your future.
Thank you for reading our “Early Remortgaging Strategy | Protect Your Mortgage Interest” publication. Stay “Connect“-ed for more updates soon!
