How Acting Early on a Remortgage Saved Our Client Nearly
Project Overview
Client:
Income Type:
Mortgage Amount:
Bank Used
Challenge
Our client, a senior consultant in London, had a £500,000 mortgage on a two-year fixed deal. With six months left on their current rate, they were unsure whether to start exploring remortgage options or wait until the last few weeks before their deal ends.
After a consultation with one of our advisors, we locked in a remortgage rate of 3.6%, six months before their current deal expired.
Over the six-month period between locking the rate and the remortgage going live, interest rates in the market increased to 4.2%.
By acting early, the client avoided exposure to higher rates and secured a predictable, lower monthly payment.
Results
Locking in an early rate of 3.6% meant our client avoided the higher market rate of 4.2%, saving approximately £3,500 per year, or around £7,000 over the two-year fixed term. This early action gave them financial certainty, peace of mind, and significant savings.
Waiting until the last few weeks before your mortgage deal ends can be costly, particularly in a rising interest rate environment. By locking in a remortgage early and completing your property valuation, you secure your borrowing capacity and rate ahead of market fluctuations. If interest rates rise and the property value falls afterward, you can still borrow based on the earlier valuation and lower rate, all while retaining the flexibility to switch if rates fall.
This proactive approach is especially valuable for high earners with larger mortgages, where even small changes in interest can have a significant financial impact.
