2025 is a big year for remortgaging. Why?

A street sign on a brick wall for 'Shambles' indicating that after Covd and Liz Truss mortgages were in a shambles.

Let’s focus on the two-year fixed rate mortgage for this blog, and anyone remortgaging between November and February…

Two years ago, Liz Truss’ ‘Mini Budget’ wreaked havoc on the mortgage industry. A raft of unfunded tax cuts caused chaos across stock and currency markets, leaving us all with massive uncertainty about our finances. Very soon, interest rates rose causing immediate pricing issues for mortgage lenders.

And what did that leave us with? Banks and building societies were entering a very cautious phase, so, mortgage rates went up, and we were left with expensive mortgages and remortgaging. Hardly anyone wanted to tie-in for any longer than two years, with the hopes that the near future would prove to be better, economically speaking… So, two-year fixed rate mortgages at a higher rate became the norm, for a while at least.

Two years on, and we are thankfully seeing lower mortgage rates than back then, and it seems the economy has recovered enough that we will see those who are remortgaging actually making a saving on their monthly repayments.

BUT! Read any headlines and you’ll know that we are still in a very volatile position with regards to the world economy, and it seems no one can predict the next few months, and how military conflicts and political omnishambles will affect our incomes and outgoings.

In fact, compared to Q1 of this year, rates have increased, and according to an article in Financial Reporter, ‘remortgage instructions increased by 73% in May and there was an average monthly payment increase for those who remortgaged of £207. And 63% of those who remortgaged took out a five-year fixed rate product, with 26% saying their main aim when remortgaging was to lower their monthly payments, (the most popular response).’

As a lowly English homeowner, you can’t influence world economics, but you can influence your own financial situation.

How do I prepare for remortgaging this year?

It does appear that this year a five-year fixed rate mortgage product is currently the most popular option.

If you’re remortgaging between November and February it’s worth asking specifically about this option for you.

I would also encourage you to take control of your outgoings now. Although it’s highly likely you will indeed be able to reduce your monthly mortgage repayments I encourage you to take a look at your spending, see what you can cut back on, talk about your remortgage that’s coming up this year, and think carefully about what to do with any savings that brings you. This is a message about saving in preparation for what we don’t know the next two or five years will look like… You never know what’s around the corner and it’s always better to be prepared than caught on the hop.

I’ve said it a thousand times, but I’ll say it again. It costs you nothing to have a conversation about remortgaging with me as your broker. The lender commission covers all my costs. You’ve got nothing to lose by starting that conversation now and being prepared for a future of saving.