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Should You Remortgage Now or Wait? A 2025 Guide

24th July 2025

With the Bank of England having cut the base rate several times since August 2024, many homeowners are asking whether now is the right time to remortgage or whether it is worth waiting to see if rates fall further. It is one of the most common questions mortgage advisers are fielding in 2025, and the honest answer is that it depends on your individual circumstances.

This guide sets out the key factors to consider when deciding whether to remortgage now or hold off.

Where Are Mortgage Rates in 2025?

The Bank of England base rate peaked at 5.25% in August 2023, the highest level in fifteen years. Since then, the Monetary Policy Committee has reduced rates incrementally, bringing the base rate down as inflation returned closer to the 2% target. By mid-2025 the base rate has fallen meaningfully from its peak, and fixed mortgage rates have broadly followed.

However, fixed mortgage rates do not track the base rate directly. They are influenced by swap rates, which reflect the market’s expectations of future interest rates. When markets expect further cuts, swap rates fall and fixed mortgage rates tend to decrease in anticipation rather than after the fact. This means waiting for more base rate cuts does not always mean you will get a significantly better fixed rate later.

Fixed Rate or Tracker?

Fixed rate mortgages give you certainty. You know exactly what you will pay each month for the duration of the deal — typically two or five years. If the base rate were to rise again during that period, you are protected. The trade-off is that if rates fall sharply, you will not benefit until your deal ends.

Tracker mortgages follow the Bank of England base rate plus a set margin. If the base rate falls further, your monthly payment falls with it. However, if the base rate were to rise, so would your payment. Trackers generally have no early repayment charges, which gives you the flexibility to switch to a fixed deal at any point.

The right choice depends on your appetite for payment uncertainty and your view of where rates are headed. If you need to budget tightly and cannot absorb higher payments if rates rise, a fixed deal provides peace of mind. If you have financial headroom and believe rates will continue to fall meaningfully, a tracker could cost you less over the next year or two.

Two-Year vs Five-Year Fixed

Two-year fixed rates have historically been higher than five-year rates — you pay a premium for the flexibility to review sooner. In the current environment, however, the difference between two and five year rates is relatively narrow for many borrowers. A two-year fix allows you to take advantage of potentially lower rates sooner if they continue to fall, while a five-year fix locks in today’s rate for longer.

Many borrowers in 2025 are opting for two-year fixes on the basis that rates may be lower when they come to remortgage again in 2027. Whether this turns out to be correct depends on factors including inflation, economic growth and global events that are impossible to predict with certainty.

When Should You Start the Remortgage Process?

The process of remortgaging takes time — usually between four and eight weeks from application to completion, though it can take longer if there are complications. If your current deal is ending in the next three to six months, now is a good time to start reviewing your options.

Many lenders will allow you to secure a rate up to six months ahead of the end of your current deal with no obligation to proceed if something better comes along. This means you can reserve a rate today while continuing to monitor the market.

If you act too late and your current deal expires before your new one is in place, you will temporarily pay your lender’s standard variable rate which is considerably more expensive.

Should You Stay with Your Current Lender?

When your fixed deal ends, your current lender will usually offer you a new deal — known as a product transfer. This can be quick and simple as there is no full affordability assessment required. However, the deals offered to existing customers are not always the most competitive available.

Before accepting your current lender’s retention offer, it is worth checking what the wider market has to offer. A whole-of-market mortgage broker can compare dozens of lenders simultaneously and identify whether switching lenders would result in a materially better rate.

Speak to a Mortgage Adviser

The decision of whether to remortgage now or wait, and which product to choose, depends on your specific financial situation, risk appetite and plans for the property. A professional mortgage adviser can assess your circumstances, explain your options clearly and recommend the most suitable product.

To speak to one of our advisers, please submit an online enquiry or call us on 0800 310 1340.

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.