Hot Topic Why Remortgaging Early Could Save You Thousands In A Volatile Market

With swap rates rising unpredictably and inflation still proving sticky, many homeowners are facing a critical question: “Should I lock in a new mortgage deal now, even if my current one isn’t ending yet?” The answer, increasingly, is yes.

The remortgage market has seen a marked uptick in activity over the last two months, driven by borrowers looking to hedge against future interest rate rises. While the Bank of England base rate remains at 4.25%, the market movements that dictate fixed-rate mortgage pricing—namely SONIA swap rates—have been anything but still.

SONIA swap rates reflect what the financial markets expect interest rates to do in the future. When they rise, lenders quickly adjust their fixed-rate mortgage pricing to reflect higher funding costs. Over recent weeks, we’ve seen swap rates for 2- and 5-year terms inch upwards in response to unexpectedly persistent inflation and the delay of anticipated base rate cuts.

Most lenders allow remortgage rates to be secured up to six months in advance of your current deal ending. By doing this, you’re effectively locking in today’s rate—even if you don’t switch until later. Best of all, you’re not committed: your broker can continue reviewing the market, and if rates drop before your new mortgage completes, you can switch to a better deal at no extra cost.

This gives you a powerful edge:

• Rate security now: If rates go up again, you're protected.

• Optionality later: If rates come down, you’re free to switch before completion.

• No early repayment charges: You keep your existing mortgage until the switch date.

Many homeowners still wait until the final month of their current fixed term to explore new options. In today’s market, that can be a costly mistake. With some fixed-rate deals increasing by 0.25–0.50% in a matter of weeks, waiting could cost thousands over the life of your next deal.

By engaging early—ideally 4–6 months before your current rate ends—you give yourself time to plan, review options, and secure the most favourable outcome.

Your AWS adviser can help you run side-by-side comparisons of fixed, tracker, and variable options while also preparing a ‘rate lock’ strategy that suits your financial goals. Whether you’re six months out or already on a standard variable rate, we’re here to guide you through it.