Question
My mortgage is due to expire at the end of 2026, but I’m wondering when I can – or should – start looking for my deal? How soon can I start researching and maybe make a deal. What if prices improve but I’m already signed up for a product?
Darren’s answer
It is a good idea to plan and review your options. In general, lenders will allow you to secure a new deal anywhere from three to six months before your current product expires.
There’s a difference between sticking with your current lender (known as moving the product or switching rates), or remortgaging with a new lender.
Look at these closely:
Switch to a new rate with your current lender
- This is classified as price switching or product shifting
- You rarely need to check your credit score or have to provide proof of income because the lender has already assumed the risk on your existing mortgage.
- It is also not necessary to carry out a valuation because the lender will have their own internal valuation of the property, which may mean that the loan-to-value ratio is positively influenced by the lender’s valuation, rather than the market value.
Return the mortgage to the new lender
- A mortgage broker can search the market based on the outstanding mortgage balance and the value of the property to see what rates are available to you
- This will be a new mortgage application which can incur legal costs and other preparation fees (your broker can guarantee free legal proceedings and a free valuation with some lenders)
- Some lenders also offer cashback deals for remortgage situations
- There will be a credit scoring application and a full assessment of income/expenses
Generally, if remortgaging is a better option for you, most mortgage offers are valid for six months, meaning you can secure a new deal at this point.
If you stay with your existing lender, new deals can be secured three, four or six months before the product expires, which will depend on your lender’s criteria.
I advise you to speak to a broker who can compare deals with your current lender and those in the market to provide the best option. They will also guide you through the process.
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