Thinking about switching your mortgage but not sure where to start? You’re not alone. Many homeowners wonder if a remortgage can really save them money. The short answer is yes – if you know the right numbers and the right time.
First thing to check is your home equity. Equity is simply the market value of your house minus what you still owe. Lenders use this figure to work out the loan‑to‑value (LTV) ratio. The lower the LTV, the more likely you’ll qualify for a better rate. In 2025 most lenders want an LTV of 75% or less, which means you need at least 25% equity.
Grab a recent property valuation – you can get a free estimate from many online tools – and subtract your current mortgage balance. That’s your equity. Divide your mortgage balance by the property value and multiply by 100 to get the LTV. For example, a £200,000 house with a £120,000 loan gives an LTV of 60% and 40% equity. That’s a solid spot for most lenders.
Use our quick checklist:
Timing matters. If your current deal is about to expire, you’ll usually get a lower rate by moving before the term ends. Also, watch the Bank of England base rate – a drop often means cheaper mortgage offers across the market.
Another good moment is when you’ve paid down a chunk of your loan and your LTV improves. That extra equity can unlock a better deal without adding extra cash.
Don’t forget to factor in fees. Arrangement fees, valuation costs, and early repayment charges can eat into your savings. A simple rule: if the new monthly payment is at least £20‑£30 lower than your current one, you’re likely in the green after fees.
Finally, talk to a mortgage adviser. They can run a side‑by‑side comparison of lenders and spot special deals that aren’t advertised publicly. In Worcestershire, many advisers specialize in local market quirks, which can give you a tiny edge.
Bottom line: check your equity, calculate LTV, compare rates, and factor in fees. If the numbers line up, a remortgage can shave a few hundred pounds off your yearly costs and free up cash for other goals.
Ready to start? Grab your latest mortgage statement, run the quick equity check, and reach out to a trusted adviser. You’ll be surprised how fast a better rate can appear when you have the right figures in hand.
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