Bank of England interest rates 2022: Why you should remortgage 'now'


“Since December 2021, the Bank Rate has risen by 165 basis points (from 0.1 percent to 1.75 percent) but over the same period, the average mortgage rate for a two-year fixed rate 7 percent LTV mortgage has more than doubled, rising by 198 basis points, from 1.53 percent to 3.51 percent.

“Mortgage rates are likely to rise as the base rate rises, so if you are in a remortgaging window, you are better off remortgaging today rather than tomorrow – this is one job that could be very costly to put off.” 

For those not quite in the remortgaging window, remortgaging early could still be a better option in the long-run – but it’s important to consider all factors before taking the plunge.

Ms Flynn said: “Remortgaging before your current deal ends could mean you’ll need to pay an early repayment charge (ERC). 

“You should compare the cost of the ERC to how much you think you could save by remortgaging, to ensure that switching early is worthwhile. 

She continued: “Although, most mortgage deals in the UK are valid for six months so if your current deal is set to expire within the next few months, you could apply to remortgage early. 

“This allows you to secure a rate and switch when your deal comes to an end, avoiding an ERC.” 

The critical eligibility factors when you remortgage include your credit rating, your income and affordability, your loan-to-value (LTV) and your overall financial position.

Ms Flynn said: “If you were eligible for a mortgage before, you should be able to find a remortgage deal now.



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