Remortgage to Secure a Better Rate: How One Hampshire Couple Avoided Rising Costs

Customer Overview

A couple in their 40s from Hampshire, both employed in professional office roles, were approaching the end of their existing fixed-rate mortgage. Seeking stability amid economic uncertainty and considering options like a Metro Bank remortgage for 2025, the couple opted to explore remortgage solutions ahead of their lender’s standard variable rate increase.

The Challenge: Avoiding Moving to a Higher Rate

As their current fixed-rate term was ending later in the year, the couple faced the possibility of reverting to their lender’s higher standard variable rate, which would have significantly increased their monthly repayments. They were not looking to make any changes to the mortgage term, wanted to avoid unnecessary fees, and preferred a short-term solution in hopes that interest rates may fall in the near future.

The Solution: Fixed-Rate Remortgage with Existing Lender

After reviewing the couple’s circumstances and goals, we recommended a remortgage with their existing lender, Metro Bank, to secure new terms. This approach allowed them to:

• Secure a new 2-year fixed rate of 5.59% ahead of their current deal ending
• Avoid standard variable rate penalties
• Pay zero administrative or product fees
• Maintain existing term of 16 years and 4 months
• Gain flexibility through portability and annual overpayment options

Metro Bank’s remortgage products offered the couple the 2-year fixed-rate option over a longer-term deal, believing interest rates may fall over time, which would give them more options in future. Products with and without fees were considered, and the no-fee option was chosen to prevent increasing long-term mortgage costs.

Results: Savings, Stability, and Peace of Mind

By remortgaging early, the couple secured a lower interest rate than their current deal provided and avoided the spike in payments they would have experienced under a variable rate.

• Initial Monthly Payment: £1,330.39
• After promo period: £1,489.36 (with projections up to 3% increase considered)
• No arrangement, valuation, legal, or survey fees
• Ability to overpay up to 20% of the balance annually without penalty

They acknowledged early repayment charges (2% in year 1 and 1% in year 2) but had no intention of repaying early during this time, making this an acceptable trade-off for rate stability through 2025.

Client testimonial

“We were really happy with how easy the process was. Staying with our current lender made everything straightforward, and getting it all sorted in advance gave us peace of mind. The advice was clear, and it helped us avoid a higher monthly payment.”

Frequently Asked Questions

Can you remortgage to secure a better rate before your current deal ends?

Yes, in many cases, lenders allow you to lock in a new rate a few months before your current deal expires. This strategy can help avoid moving onto a higher standard variable rate.

Does remortgaging affect your credit score?

Applying for a remortgage can result in a soft or hard credit check depending on the lender, which might slightly impact your score. However, careful comparison and preparation with a broker can minimise unnecessary credit checks.

Are there fees involved with a remortgage?

It depends on the product. In this case, the clients chose a no-fee remortgage, avoiding arrangement, valuation, legal, and survey fees. Some mortgages include fees, so it’s important to compare total costs as well as the interest rate.

What documents do I need to remortgage?

Typically, you’ll need proof of income (payslips or tax returns), bank statements, ID documents, and details of your current mortgage. A broker can guide you through this to ensure nothing is missed.

Can I overpay on my new mortgage?

Yes, many lenders—including Metro Bank in this case, which clients are considering for remortgage options planning by 2025—allow you to make overpayments of up to 20% of your mortgage balance each year without charges. This can reduce your loan term and overall interest paid.

Secure Your Better Rate Today

Don’t wait until your current mortgage deal ends to take action. Remortgaging early could save you hundreds or even thousands annually, protect you from rising rates, and offer new flexibility aligned with your needs.

Ready to explore your remortgage options? Contact Deal Direct for expert advice and access to leading remortgage rates, possibly through Metro Bank, tailored to your unique circumstances as we approach 2025.