Many lenders will not allow you to switch deal until you have had your mortgage for at least 6 months. Exceptions to this are property investors that use expensive short term finance called bridging loans to buy unhabitable properties at auction. Due to the unattractive rates, investors will usually want to renovate and then remortgage as soon as possible to secure a lower rate.
After the initial 6 months, you can remortgage at any time however if you have a fixed term deal then you are more than likely going to incur early repayment charges if you remortgage before the end of the deal.
If you wait longer, you are likely to have more options for new loan deals.
Some lenders will be more willing to offer you a remortgage sooner than others so if this is something you are interested in, it is worth checking with your mortgage adviser or lender as to whether this flexibility is something they can offer you.
Bear in mind that remortgaging won’t always mean there is equity to release in the property. If you took a 90% mortgage and are only 1 year into paying off the loan, you are unlikely to have sufficient equity within the property to release it as lenders will only usually release equity up to 90%. For remortgages the maximum LTV lenders are usually willing to loffer when you release equity is around 75 – 85%.
If you have carried out significant home developments or renovations and want to release the equity gained from the increase in value, you can apply for a remortgage to do this but expect the lender to scrutinise any application, requesting documentation and they may also want to carry out their own valuation before making a decision.
The legal process of remortgaging takes on average between 4-8 weeks if you are changing lenders. It is therefore a good idea to start considering your options and planning your remortgage at least 3-4 months prior to your fixed deal ending.
