What does the cost of living crisis, interest rates, your financial stability, moving plans, debts, and renovations have in common? They’re all factors that might encourage you to learn more about how and when to switch mortgage deals. Recent stats suggest that a third of all mortgage loans currently progressing in the UK are remortgaging. Property values increase quarter to quarter, and homeowners learn more about their financial options, so deals like these come as no surprise.

However, deciding to switch mortgage deals isn’t for everyone. The decision comes with pros and cons, like any major financial adjustment. Ultimately, learning more about remortgaging helps you determine your ideal outcome for yourself.

switch mortgage deal

How to Switch Mortgage Deal

Switching mortgages requires research, negotiation, and paperwork. While this might not sound like riveting stuff, the exciting part is that it could save you hundreds or even thousands of pounds. To make the switch, you must simply reach a decision with your existing lender or find a deal with another provider.

Borrowers typically begin considering switching mortgages three to six months before their existing fixed-rate term ends. However, others decide to exit their mortgage earlier to achieve a different financial objective. This decision hinges on many different factors, including the terms and details of your current deal, and whatever financial resources or advice you use to leverage your new deal.

Should You Switch Mortgage Deal?

People switch their deals to make the most of low-interest rates, decrease their debts, and improve their budgets. It’s not always easy to accomplish these goals, but it’s often possible. There’s no harm in exploring your options and making a decision based on the most financially sensible outcome.

What Factors Affect When to Switch Your Mortgage

Your Existing Deal’s Terms

Long-term mortgage deals often come with early repayment fees and exit fees, charged at a percentage of your total remaining debt. Some deals may only impose nominal fees, or, in some cases, no fees at all. Even if you face fees when trying to switch your deal, the fee might pale in comparison to your potential savings from a new mortgage rate elsewhere.

These fees, along with any other legal or administrative charges, must be accounted for when you assess your best options.

Your Existing Deal’s Length

Borrowers take out mortgages with a fixed rate that typically lasts between 2 and 10 years. When this rate expires, the mortgage defaults to the lender’s standard variable rate (SVR). These rates are generally far higher than the fixed-rate period, so it’s always worth learning how to switch deals in advance.

Your Circumstances

Your circumstances may change between the time you take out your mortgage and when you consider switching your mortgage. For one thing, you’ll now possess equity in your property. For another, the value of that equity will also shift, depending on the UK housing market and that of your local area. Your career or salary may have changed, and you might have inherited or spent some savings. You can switch mortgage deals for a more favourable rate whenever your personal circumstances improve. You can also switch mortgage deals to reduce your repayments if you need to save cash elsewhere.

Your Support From Mortgage Professionals

Clearly, several different individual and national issues shape the timeframe of your mortgage deal. Understanding these factors and how they interact with each other helps you capitalise on your situation. Mortgage brokers help borrowers get a firm grip of all their options, and even introduce new possibilities to help support their remortgaging strategy.

With a wealth of experience and access to deals that might not even appear on mainstream comparisons, mortgage professionals provide all the tools to secure the ideal mortgage switch.


The content of this post was accurate at the point of publication and is subject to change.