The remortgaging conundrum – choosing the right time to lock in a rate

Rates. They’ve been at the forefront of everyone’s mind for well over a year now with many watching closely to see whether they’re on a downward trajectory and trying to work out when the best time will be to lock in a rate. There has been an air of volatility in recent weeks with some lenders adjusting their pricing up, not down. So, what does this mean to the average person and how can you best stay on top of your mortgage?

Offer validity is key here and understanding what this means for your future remortgaging. Most high-street lenders will offer on a product for six months and once applied for that rate is, generally speaking, secured and cannot be changed by the lender regardless of what the market does. This gives you, as a customer, the opportunity to secure a product six months in advance of your current deal expiring. If rates go down, you simply ask them to re-offer on a new, more competitive product and most lenders will do so without charge or question. If rates go up, then you have the benefit of having secured a lower rate than if you had waited. It is worth noting that there would be time and cost implications should you wish to switch to a different lender altogether.

The recent bout of rate volatility has really highlighted the importance of being aware of product expiry dates and the potential benefits of acting sooner rather than later. There is no right or wrong time, but locking in a rate with a lender early certainly offers a degree of certainty and gives you more control over the options available to you over the course of the following months.