Remortgaging in 2025? Here’s What You Need to Know

If your current mortgage deal ends in 2025, it’s time to prepare for the expected changes in the mortgage world and consider remortgaging to save money on the overall cost if your current deal no longer works for you or your current mortgage deal is ending.

Remortgaging rates, the property market, and stamp duty are all changing, and homeowners and property investors have a lot to think about. Knowing what to expect in 2025 will help you make the right decisions and find the most suitable new mortgage deal.

In this article, we’ll explore the key mortgage trends, challenges, and opportunities homeowners will face when remortgaging in 2025, and how speaking with expert mortgage advisers can help you decide on your next steps.

Mortgage Rates Are Expected to Fall in 2025

There’s some good news for homeowners and homebuyers; interest rates are predicted to fall in 2025. If your current deal is nearing its end, the typical

This decrease is expected to follow interest rate cuts by the Bank of England. While this is welcome news, it’s worth noting that rates are unlikely to return to the historically low levels we saw during the pandemic. However, this decrease will make borrowing more affordable for many people, reducing the overall cost of many mortgages and boosting confidence in the housing market.

2025 Will Remain a Buyer’s Market

For investors and first-time buyers, 2025 is looking like a good year to submit a mortgage application. According to RightMove property expert Tim Bannister, t. However, average house prices are forecast to rise by around 4% by the end of the year, the largest increase since 2021, potentially creating a higher loan-to-value (LTV) ratio.

If you’re considering a property investment or your first home purchase, this relatively balanced supply and demand dynamic will provide plenty of opportunities, especially if you can take advantage of soft negotiations in the early months of the year.

Eden Hawk Financial Solutions can help you secure an agreement in principle, do affordability checks to find out how much you could borrow, help you budget to repay your mortgage balance, and track interest rates to help reduce the overall cost of your mortgage deal.

What to Expect if Your Fixed-Rate Mortgage Ends in 2025

For homeowners, the end of fixed-rate mortgage products can be a time to reflect on the benefits of remortgaging. You may choose to stay with the same lender if they can offer you a competitive new deal that is fitting with your needs but it may be worth looking at a different lender if they offer more competitive solutions. Here’s how 2025 could play out, depending on when you took out your last mortgage deal:

For Homeowners with a Five-Year Fixed Mortgage from 2020

If you took out a mortgage at a low fixed rate back in 2020 when rates were at historic lows, you may be in for a shock when your fixed term ends, and you see a significant increase in your monthly repayments. The prospect of paying more may be unpleasant, but with early planning and a thorough search for competitive remortgage deals, you can make the transition to higher rates as smooth as possible. If your current lender no longer suits your needs, a mortgage broker can help you find a new mortgage deal with a new lender to help keep the total amount of your repayments to a minimum.

For Homeowners with a Two-Year Fixed Deal from 2022 or 2023

While 2022 had low rates for the majority of the year, you may consider remortgaging if you took out a two-year fixed deal during the higher-rate environment of 2023. The predicted drop in interest rates in 2025 could mean lower monthly payments, meaning this may be a great opportunity to switch to a lower-priced product.

The key factor is timing. Keeping a close eye on mortgage rates and understanding lender behaviour will help you get the most suitable deal. Interest rate trackers can be useful tools for monitoring these trends.

Keep in mind that if you decide to complete a remortgage before your current product ends, you may be required to pay early repayment charges to your current lender.

How Could Stamp Duty Changes Affect You?

April 2025 is expected to bring an increase in stamp duty rates in England. Early signs suggest that there could be a surge in buying activity in the months leading up to the deadline, as first-time buyers buying homes with property value over £300,000 look to avoid higher stamp duty bills. For other residential home buyers, the threshold for paying stamp duty will drop to £125,000 in April.

Fortunately, if you’re remortgaging for a new deal or home improvements to raise your home’s value, you won’t normally need to pay stamp duty. The exception is if you’re doing a transfer of equity, where a change in ownership of the property occurs.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

How Eden Hawk Can Help

At Eden Hawk Financial Solutions, we understand that remortgaging can be a complex process, especially in a rapidly changing housing and mortgage market. That’s why our experienced team is here to support you every step of the way:

• Personalised Support: Our mortgage experts collaborate with you to uncover the most suitable remortgage options for your financial situation. If you wish to remortgage with additional borrowing, we can offer advice and support and help you apply online.
• Market Insights: Stay ahead of the curve with our latest remortgage rate tracker, designed to empower you to make timely and strategic decisions.
• Exclusive Offers: Gain access to lender-exclusive deals that may not be available elsewhere.
• Hassle-Free Process: We handle the paperwork and negotiations, freeing up your time and energy.

By partnering with us, you’ll be equipped with the tools and knowledge with the aim to maximise your opportunities when remortgaging in 2025.

Final Thoughts

Remortgaging in 2025 will present both opportunities and challenges, with mortgage rates forecasted to fall and the housing market remaining a buyer’s market. However, for homeowners transitioning from the low fixed rates of previous years, preparation is key to managing potential increases in repayments.

To ensure your remortgaging experience is as smooth and beneficial as possible, start your planning early. Compare remortgage rates, assess your financial priorities, and seek professional guidance. At Eden Hawk Financial Solutions, we’re committed to helping homeowners and property investors get the most suitable remortgage options they’re eligible for in a competitive market.

Take the first step today by getting in touch with one of our mortgage experts. Together, we’ll work towards making the most of your remortgage.

Tax planning and some buy-to-let mortgages are not is not regulated by the Financial Conduct Authority