Your mortgage renewal might feel like a long way off, but preparing early could save you thousands of pounds and spare you from unnecessary stress. Whether your current deal ends in six months or next year, now’s the time to get ahead of the game.
A mortgage renewal is when your existing mortgage deal comes to an end, and you need to arrange new terms with either your current lender or a new one. For many homeowners, this is a golden opportunity to secure better rates, reassess your finances, and ensure your mortgage still fits your life.
But leave it too late, and you could find yourself automatically moved onto your lender’s standard variable rate, which is typically much higher than the deals available on the market.
This guide walks you through everything you need to know about preparing for your mortgage renewal, from checking your credit score to consulting an adviser, all designed to put you in the strongest possible position.
Start Planning Early (6 Months Ahead)
The biggest mistake homeowners make? Waiting until the last minute.
Starting your renewal preparation around six months before your current deal ends gives you breathing room to compare rates, fix any financial issues, and negotiate the best possible terms.
Many lenders allow you to secure a new rate up to six months in advance without penalty, meaning you can lock in a competitive deal even if rates rise before your term officially ends.
Early planning also means you won’t be forced into a rushed decision. You’ll have time to assess whether staying with your current lender makes sense or if switching could save you money.
And if your circumstances have changed since you first took out your mortgage, you’ll need that time to adjust your approach.
What to do now:
- Mark your calendar for six months before your renewal date
- Review your current mortgage terms and outstanding balance
- Start thinking about what you want from your next deal
Review Your Current Financial Situation
Before you start shopping around for rates, take stock of where you are financially.
Your income, expenses, and existing debts all play a role in determining what deals you’ll qualify for. Have you had a pay rise since your last mortgage application? Or perhaps you’ve taken on additional credit commitments?
These changes matter, and lenders will want to see evidence that you can comfortably afford your repayments.
Key areas to review:
- Monthly income (including bonuses, if applicable)
- Regular outgoings (bills, subscriptions, childcare, travel)
- Existing debts (credit cards, car finance, personal loans)
- Any changes to your employment status or household composition
If your financial situation has improved, you may qualify for better rates. If it’s tightened, you’ll need to be realistic about what you can afford and potentially seek specialist advice.
Use an affordability calculator to get a rough idea of what you might be able to borrow based on your current circumstances. This helps set realistic expectations and highlights any areas you might need to address before applying.
Research Current Mortgage Rates
Mortgage rates fluctuate constantly, influenced by everything from Bank of England base rate changes to broader economic conditions.
What seemed like a great rate two years ago might not be competitive today, and what’s available now might not be available in six months. That’s why it’s worth keeping an eye on current trends and understanding what deals are on the table.
Why rates matter:
- Even a small difference in interest rates can mean thousands of pounds over the life of your mortgage
- Rates vary significantly between lenders, and your current lender may not offer the best deal
- Consulting a mortgage adviser gives you access to rates and products not available on the high street
Don’t assume your current lender will automatically offer you the best rate just because you’re an existing customer.
Shop around, compare products, and consider speaking to a broker who can search the entire market on your behalf. For expert guidance on finding the best rates, you can reach out to Paul Welch at paul.welch@millionplus.com who specializes in luxury asset financing and complex mortgage arrangements.
Check and Improve Your Credit Score
Your credit score is one of the most important factors lenders consider when deciding whether to offer you a mortgage, and at what rate.
Even if you had a strong credit profile when you first took out your mortgage, things can change. A missed payment, increased credit card balances, or a change in your credit mix can all impact your score.
Before you apply for renewal, it’s worth checking where you stand.
How to check your credit score:
- Use free tools like Experian, Equifax, or ClearScore
- Review your report for errors or outdated information
- Check for any unexpected accounts or searches
If your score needs work, don’t panic. There are practical steps you can take to improve it before renewal:
- Pay down credit card balances (aim for below 30% of your limit)
- Clear small debts to reduce your overall credit commitments
- Register on the electoral roll at your current address
- Avoid applying for new credit in the months leading up to renewal
Even modest improvements can make a difference to the rates you’re offered.
Understand Your Options
Not all mortgage deals are created equal, and renewal is the perfect time to reassess what type of product suits your needs.
Should you fix your rate for two, five, or even ten years? Or would a tracker or variable rate give you more flexibility? Do you want to extend your mortgage term to reduce monthly payments, or shorten it to pay off your home sooner?
Common mortgage types to consider:
- Fixed-rate mortgages: Your interest rate stays the same for a set period, giving you predictable monthly payments
- Tracker mortgages: Your rate follows the Bank of England base rate, meaning payments can go up or down
- Variable-rate mortgages: Your rate can change at any time based on your lender’s discretion
Each option has pros and cons depending on your financial situation, risk tolerance, and long-term plans.
If you value stability and want to budget with certainty, a fixed rate might be best. If you’re comfortable with some risk and want to benefit from potential rate cuts, a tracker could work.
You can also adjust your mortgage term at renewal. Extending the term lowers your monthly payments but increases the total interest paid. Shortening the term does the opposite, helping you pay off your mortgage faster but with higher monthly costs.
Consult a Mortgage Adviser Early
Here’s where many homeowners underestimate the value of professional advice.
A good mortgage adviser doesn’t just compare rates; they analyse your entire financial picture, identify products you might not find on your own, and handle the paperwork that can trip up even experienced buyers.
And when it comes to renewal, getting advice early (ideally around six months before your deal ends) can unlock deals and strategies you wouldn’t have considered.
What a mortgage adviser can do for you:
- Search the entire market, including lender-exclusive products
- Explain complex product features in plain English
- Help you navigate affordability checks and application requirements
- Save you time by managing the process from start to finish
Advisers often have access to preferential rates and can negotiate on your behalf. They’ll also spot potential issues before they become problems, whether that’s a credit file error or an affordability gap.
If you’re looking for bespoke financing solutions, particularly for high-value properties, MillionPlus offers specialized mortgage services. You can explore financing options at https://millionplus.com/financing/ or contact the team directly.
Use Tools to Calculate Affordability
Before you commit to any new deal, it’s worth running the numbers.
Affordability calculators give you a realistic sense of what you can borrow based on your income, expenses, and existing debts. They’re particularly useful if your financial situation has changed since you first took out your mortgage.
What affordability calculators tell you:
- Estimated monthly repayments based on different rates and terms
- How much you could borrow with your current income
- The impact of rate changes on your monthly budget
These tools aren’t a substitute for a full mortgage application, but they’re a helpful starting point. They can also highlight areas where you might need to make adjustments, such as paying down debt or increasing your deposit.
Frequently Asked Questions
When should I start preparing for mortgage renewal?
Ideally, start preparing around six months before your current deal ends. This gives you time to review your finances, compare rates, and consult an adviser without feeling rushed.
Many lenders allow you to secure a new rate up to six months in advance, so you can lock in a good deal even if rates rise before your term officially ends.
Should I fix my mortgage rate now?
It depends on your financial situation and the current rate environment.
If rates are rising or you value predictable monthly payments, fixing your rate could provide peace of mind. If rates are expected to fall or you’re comfortable with some risk, a tracker or variable rate might offer more flexibility.
Speak to a mortgage adviser to discuss what’s right for you.
Can I change lenders during renewal?
Yes, absolutely. You’re not obligated to stick with your current lender, and switching could save you money if another lender offers better rates or terms.
Just be aware that switching may involve additional costs like valuation and legal fees, so factor these into your decision.
What if my financial situation has changed?
Changes in income, employment, or credit can affect your renewal options.
If your situation has improved, you may qualify for better rates. If it’s worsened, you might need to explore specialist products or seek advice from a broker who understands complex cases.
Either way, early preparation gives you time to address any issues.
Do I need a mortgage adviser for renewal?
You’re not required to use an adviser, but it’s often worth it.
Advisers can access products not available directly to consumers, compare the entire market, and handle the application process on your behalf. If your finances are straightforward and you’re confident comparing products yourself, you may not need one.
But most homeowners benefit from professional guidance, especially when dealing with high-value properties or complex income structures.
Take Control of Your Mortgage Renewal
Preparing for a mortgage renewal doesn’t have to be stressful.
By starting early, reviewing your finances, checking your credit, and exploring your options, you’ll put yourself in the strongest possible position to secure a deal that works for you.
Remember the key steps: start planning at least six months ahead, research current rates, improve your credit if needed, and understand the different mortgage products available.
And if you’re unsure about any part of the process, don’t hesitate to consult an adviser who can guide you through every step.
If your mortgage renewal is approaching, expert advisers can help you find the right deal and guide you through every step. Whether you’re looking to switch lenders, adjust your term, or simply secure the best rate available, professional advice can make all the difference.
For luxury property financing or complex mortgage arrangements, you can create a free account at https://millionplus.com/login-register/ to explore available properties and financing options, or contact Paul Welch directly at paul.welch@millionplus.com.
Take the first step towards a smarter mortgage renewal today.
