When Is It A Good Time To Remortgage?
- Penn Financial
- Aug 5
- 2 min read
With fixed-rate mortgage deals becoming more competitive and the Bank of England expected to cut interest rates, many UK homeowners are asking:
"Is now the right time to remortgage?"
Making informed decisions now could result in significant savings on your monthly mortgage payments.
July 2025: Current Mortgage Market Conditions
Mortgage rates have continued to ease throughout 2025. Anecdotally, average two-year fixed rates have dropped to just over 5%, and five-year fixed rates are now just a little higher than that, the lowest levels seen since 2022.
Who Should Consider Remortgaging?
Homeowners with fixed-rate deals ending soon.
With many borrowers approaching the end of their fixed term, it is wise to start reviewing options several months ahead.
Those looking for more payment certainty.
Fixing now locks in current rates, even if they are modestly higher, rather than risking market movements later.
Borrowers open to shorter-term or tracker products.
If you are risk-seeking, tracker products could become cheaper if rates decline later in the year.
Clients seeking long-term security with narrowed gaps between 2 and 5-year deals.
The gap between 2 and 5-year fixed rates is narrowing, making longer fixes attractive for those valuing stability.
Key Considerations for Remortgaging
When remortgaging, consider more than just the interest rate. Review the overall cost, from arrangement fees, Early Repayment Charges (ERCs), and any legal or valuation costs. If you are thinking about releasing equity, weigh up the benefit against the increase in monthly repayments.
Please contact us to speak to your advisor to assist you in finding the best deals available to you.
Lux Mathiy
0207 183 5938
The information provided in this article is not intended to constitute professional advice. You should seek comprehensive legal, accountancy, or financial advice regarding your situation from a qualified Solicitor, Accountant, or Financial Advisor/Mortgage Broker before taking any action.
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