Thousands of homeowners across Wales are reaching the end of fixed-rate mortgage deals set when interest rates were at historic lows. According to the UK Finance Mortgage Market Forecast, 1.8 million mortgage deals will expire nationwide in 2025, with many of these affecting homeowners in Wales.

If no action is taken, borrowers risk being moved to standard variable rates (SVRs), which are often higher than fixed deals. Today, we’re exploring some frequently asked questions to help you decide if you could benefit from making the switch to avoid overpaying.

When should I consider remortgaging?
Some common reasons you may wish to remortgage include:

• Falling interest rates, which could make a new deal cheaper
• Your home has risen in value, which may lead to a better lending rate
• Your fixed-rate mortgage is about to expire
• You need to borrow money, for example, to upgrade your home
• You want to buy out someone else from your home
• Your current lender won’t let you overpay your mortgage

Is now a good time?
Following two interest rate cuts by the Bank of England, the base rate is now at 4.25%, offering some relief to borrowers, with new deals beginning to reflect the lower rates. Furthermore, there has been a 34% uptick in remortgaging activity nationwide in the first quarter of the year, as fixed-rate deals begin to expire.[1] If you’re nearing the end of your mortgage, especially if you locked in a favourable fixed rate before, now might be a great time to look at what’s available from lenders to avoid being moved to a less competitive standard rate.

What are the drawbacks?
You may face early repayment charges if you leave your current deal before the term ends, which can be costly. Arrangement fees, valuation costs, and legal expenses may also apply when switching lenders. Additionally, if your home's value has decreased or your credit score has worsened, you might not qualify for the best rates. In some cases, remortgaging could extend your repayment period or result in higher long-term costs.

However, if your mortgage deal ends in the next 6–12 months, now’s the time to act. Speak with a local mortgage adviser who understands the Welsh market and compare the latest deals to ensure you’re not overpaying when the time comes to secure a new rate.

If your home has increased in value, you may be able to secure a better mortgage deal when you renew. Contact us on the details below to book an up-to-date valuation.