Home Property Finance & InvestmentMortgages Tips for remortgaging in 2025

Mortgage lending is forecasted to grow by 11% this year to reach £260bn driven partly by a large increase in remortgaging.

The banking trade body expects gross lending for 2024 to be £235bn when the final numbers are counted, marking an increase of 4% on last year’s total.

Shaun Bettman, CEO of Eden Emerald Mortgages said, “Remortgaging can be a complex procedure. Generally, it is feasible for those who meet the necessary criteria and are prepared to navigate the process.

“Credit score is a significant factor in remortgaging. If you have a high credit score, you will likely qualify for better interest rates and loan terms more easily.

“Conversely, if you have a low credit score, you may find it difficult to qualify for a refinance and face higher interest rates.

“When preparing for remortgaging, you should assess your long-term financial goal first. If you want to reduce your monthly payments, aim to lower your interest rate.

“For stability, you may also want to consider switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage (FRM).

“Shortening your loan term from 30 to 15 years could help you repay your mortgage faster.

“If you aren’t sure about remortgaging, seek professional guidance and work with a mortgage broker or financial advisor to help you navigate the complexities of refinancing.”

Five tips when preparing to remortgage

Review your current mortgage

Check if your current mortgage has an early repayment charge or other fees that may affect your decision.

Prepare early

Aim to begin the process at least 3-6 months before your current deal ends to avoid reverting to your lender’s Standard Variable Rate (SVR), which is often higher.

Use comparison sites

Use comparison websites to shop around. Don’t automatically stick with your current lender unless they offer the best deal. Also look at fixed, variable, and tracker rates to see which suits your financial situation best.

Assess your financial goals

Take into account whether you want to reduce your monthly payments or shorten the term of your mortgage.

Also factor in any upcoming changes in your finances, such as a salary increase or retirement.

Check your credit score

Ensure your credit report is accurate, as lenders assess your creditworthiness, which can influence the deals you’re offered.

Avoid taking on additional debt before applying for a new mortgage.

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