If you are coming to the end of a fixed rate or tracker deal, it’s easy to assume a remortgage is simply a case of switching to a new rate when your current one runs out. But for many homeowners, a remortgage is about much more than the interest rate, it’s also an opportunity to raise capital for the things that matter to you.
Why timing matters
Our advice to every client is the same: start looking at your remortgage options up to six months before your current deal ends. This isn’t just about avoiding your lender’s standard variable rate, it’s about giving yourself the time and flexibility to explore the whole market, understand what capital raising options are available to you, and make a decision that’s right for your circumstances, not just the fastest one.
Leaving it too late often means fewer choices, less time to gather documentation, and sometimes missing out on rates or products that would have suited you better.
Capital raising: more common than you’d think
One of the most overlooked benefits of remortgaging is the ability to raise capital alongside your rate switch. Recent industry data on why homeowners choose to release equity paints an interesting picture:
- Home improvements remain the top reason homeowners raise capital, cited by 43% of applicants in the first half of this year, matching the same proportion recorded across the whole of last year. Whether it’s a new kitchen, an extension, or adapting a home for changing needs, improvements are consistently the number one driver.
- Paying off an existing mortgage has become an increasingly popular reason to raise capital, rising from 27% across all of last year to 30% in the first half of this year, and climbing further quarter-on-quarter, from 27% to 32%. This remains below the levels seen five years ago, when almost half of customers raised capital for this reason, but the upward trend is clear.
- Gifting to family has become slightly less common as a reason, falling from 19% last year to 15% this year, as more homeowners prioritise paying down their mortgage, consolidating other debts, or generally strengthening their financial position.
It doesn’t always have to be a full remortgage
If home improvements are your main goal, a full remortgage isn’t always the only route. Depending on your circumstances, a further advance with your existing lender or a second charge mortgage could be a better fit, allowing you to raise the funds you need without necessarily unpicking your current deal. Which option makes sense will depend on your existing rate, how much you want to borrow, and your overall financial picture, which is exactly why it pays to have the conversation early and explore all the options with a broker who isn’t tied to one lender.
Why speak to a whole of market broker
As a whole of market broker, we’re not limited to a handful of lenders or products. We compare deals across the market to find an option that fits your goals, whether that’s simply the best rate, capital for home improvements, consolidating debts, or paying off your mortgage sooner.
The takeaway
Whatever your reason for remortgaging, don’t wait until your current deal is about to expire. Start the conversation up to six months in advance, and you’ll have more time, more options, and a clearer picture of whether a remortgage, further advance, or second charge is the right route for you.
Get in touch today to talk through your options, there’s no obligation, just a conversation about what’s possible.
This article is for information only and does not constitute financial or mortgage advice. Your home may be repossessed if you do not keep up repayments on your mortgage. Munro Mortgages is a trading style of The Lending Channel, authorised and regulated by the Financial Conduct Authority (FCA), FCA number 626787.
Leave a Reply