Is there a time limit to remortgage in advance?

Ena123

Our fixed mortgage ends in November and with the current interests rise and inflation and everything we thought we would remortgage rather sooner than later, i.e. find a deal and sign it before the interests go up again. Is there any limit how soon we can do it? I spoke with our previous broker who gave as a good deal in the past and we might go with her again, she said not to worry, the interest won't go up as much, that we can start looking into it in August/September. 
Can we do it now to secure a lower interest? 

Also, having a bit of extra cash, is it better to pay the allowed excess in advance each year or wait for a remortgage and pay one lump sum as a deposit? How does the bank look at it? 

Thanks. 

kingstreet

Many lenders have offers lasting for six months.

beckstas-money

Natwest told us last week 120 days

K_S

Ena123 said:

Our fixed mortgage ends in November and with the current interests rise and inflation and everything we thought we would remortgage rather sooner than later, i.e. find a deal and sign it before the interests go up again. Is there any limit how soon we can do it? I spoke with our previous broker who gave as a good deal in the past and we might go with her again, she said not to worry, the interest won't go up as much, that we can start looking into it in August/September. 
Can we do it now to secure a lower interest? 

Also, having a bit of extra cash, is it better to pay the allowed excess in advance each year or wait for a remortgage and pay one lump sum as a deposit? How does the bank look at it? 

Thanks. 

@ena123If you're considering a remortgage (new lender) - most mainstream remortgage offers are valid for 6 months so with a fix ending in November, you should be able to secure a rate soon. FYI rates are secured when you/broker submits a full application. With lenders like Nationwide, you can even 'reserve' a product for 90 days by doing a DIP without having to put in a full application.

If you're only considering a product-switch/product-transfer/rate-switch (staying with the current lender) then how soon you can 'secure' a rate will depend on the specific lender's policy.

I don't want to second guess your broker but I would somewhat disagree with her stance. As long as you ensure that you're aren't incurring any sunk costs, there are no downsides to getting a remortgage offer as early as you can. If rates go down, you can always look at switching products, if rates go up you just sit tight.

If you have extra cash and can make a penalty-free overpayment, it's usually more convenient to do that prior to the remortgage .

K_S

beckstas-money said:

Natwest told us last week 120 days

For the benefit of others who may come across this thread - I don't know if it is different direct, but for brokers NatWest residential remortgage offers are valid for 6 months plus a 1 month extension if needed.

kingstreet

It would help if people didn't confuse a remortgage with a customer retention product. It is as K_S set out above. The difference between new lender and existing lender options.

Ena123

Thank you all for your informative comments.