Revisiting your current mortgage deal and opting to refinance rather than stick with the current setup is a process plenty of people consider. And more than almost any other financial decision, timing is key.

So the question is, should you act now to switch up your mortgage package, or should you stay put instead?

Strike while the rates are low

A quick glance at the current mortgage rates will reveal that now is a good time to get on the property ladder if you can find a lender that will have you, since there is a close relationship between overall interest rates and mortgage rates specifically.

This is all about the way rates are set; the lower they are, the better deal borrowers can get, and so the bigger the incentive to refinance will be.

Today, interest rates are at their lowest point for half a decade, which means average mortgage rates are also similarly appealing. The fact that they are unlikely to fall much lower, but could potentially creep upwards in the next 12 to 24 months, is further reason to consider refinancing right now, rather than waiting to see how things play out.

Your circumstances are key

While the general advice to refinance makes sense for some, not everyone should or can take advantage of low rates right now.

For example, if you are locked into a fixed rate deal that has yet to expire, or your financial circumstances mean that you are unlikely to be approved for a fresh package, you will have little choice but to settle for what you have at the moment.

Likewise if your current rate is already about as good as other packages out there, you may not want to put yourself through the hassle of refinancing when it will have little day to day difference.

At the other end of the spectrum, if your credit score has improved thanks to consistently repaying your mortgage on a monthly basis and you are in a stronger position than you were when you first acquired a mortgage, you could make significant savings by refinancing sooner rather than later.

Another factor to weigh up is the size of your mortgage itself, and the difference that small percentage changes to the interest you are paying on it will make. Those with smaller mortgages will feel fewer of the benefits that come with refinancing than those who are keeping up repayments on far more valuable real estate.

Your future plans matter

Refinancing your mortgage is not just about working out whether it is a good idea today, but whether it will be a change that has positive results in the long term.

For example, refinancing comes with fees to cover, and if you end up selling your home shortly afterwards, the savings made from changing packages may not be sizable enough to have made up the difference.

It is best to consult a professional mortgage advisor so that all of the variables at play can be taken into account and used to calculate whether refinancing is worthwhile today or whether you already have the best mortgage for your needs.