Why locking in a new mortgage deal could save you money

Even if your current mortgage deal doesn’t end for a few months, it can still be worth looking at options early. For many borrowers, starting a remortgage search before your existing deal expires may help you reduce the risk of paying more than you need to.

In this guide, we explain the main reasons why starting your remortgage search sooner—often up to around six months before your deal ends—can be beneficial.

Avoid moving onto your lender’s standard variable rate (SVR)

When a fixed or discounted deal ends, many borrowers are moved onto their lender’s standard variable rate (SVR). The SVR is a “default” rate and it’s often higher than the rates available on new deals.

Because you typically don’t have to reapply when you move to SVR, it can feel like the simplest option. But if your SVR is materially higher than your current rate, the difference can add up over time.

What to consider:

• Your SVR rate may be higher than the rate you could secure on a new deal.
• The longer you stay on SVR, the more you may pay in extra interest.
• If you’re close to your deal end date, there may be less time to compare options and complete paperwork.

Reduce the impact of interest-rate uncertainty

Mortgage rates are influenced by wider economic factors, including the Bank of England base rate and lenders’ funding costs. While markets may anticipate rate changes, the timing and direction of future movements can’t be guaranteed.

Locking in a deal can help you manage that uncertainty by fixing your interest rate for the chosen term (for example, a fixed-rate period). If rates rise after your current deal ends, you may be protected—at least for the period you’ve fixed.

A practical way to think about it:

• If you wait until the last minute, you may be more exposed to whatever rates are available at that point.
• If you secure a new deal earlier, you can plan repayments with more certainty.

Potentially improve the overall deal cost (including fees)

It’s not only the interest rate that affects the total cost of a remortgage. Some lenders structure their offers with different combinations of:

• Arrangement fees
• Product fees
• Rate/fee trade-offs (a lower rate may come with higher fees, or vice versa)

By searching earlier, you may have more time to compare deals and understand how fees affect the overall cost.

What to look for:

• The total cost over the period you expect to keep the mortgage.
• Whether a fee is payable upfront or added to the mortgage balance.
• How the rate and fee combination changes the long-term picture.

Avoid the pressure of last-minute decisions

Remortgaging can involve paperwork and lender processes, including affordability checks and document gathering. Even when everything goes smoothly, timelines can be tight.

Starting earlier can help you avoid the stress (and potential cost) of trying to complete everything right before your current deal ends.

Why timing matters:

• If your application takes longer than expected, you could end up paying SVR for longer.
• If you’re declined or need to adjust your application, having time to review alternatives can reduce disruption.
• You’re more likely to make a considered decision rather than one driven by urgency.

When locking in early may not be the best move

While early planning is often helpful, it isn’t always appropriate for every situation. For example:

• If you expect to move home soon, you may need to consider early repayment charges on your current or new deal.
• If your circumstances are likely to change significantly (income, employment status, or borrowing needs), the “best” deal may shift.

The key is to align the timing of your remortgage with your likely plans and the costs that could apply.

Planning your remortgage search: what “early” can mean

For many borrowers, starting the process several months before the end of the current deal gives breathing space to:

• compare options properly
• understand fee structures
• gather documents
• complete the application without rushing

Even if you don’t lock in immediately, beginning your research earlier can help you move quickly when you find a deal that fits.

General information

This guide is for general information only and does not constitute financial advice. Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.