Can You Remortgage Early?
, by Matt Stevens
Many homeowners believe they have to stick with their current mortgage deal until it ends, but that’s not always true. In fact, you can often line up a new mortgage while still under your existing agreement.
But is it the right move for you? That depends on a range of factors, from potential savings to fees and charges.
In this article, we’ll break down what you need to think about before remortgaging early, the pros and cons involved, and how to decide if it’s the right time to make a change.
How early can you remortgage?
Generally speaking, you can remortgage around six months after buying your home. Some lenders may even allow you to switch sooner, but this largely depends on their individual policies.
Whether it makes financial sense to do so, however, is another matter. The benefits need to outweigh any costs involved.
If you're currently on a fixed-rate mortgage, one key consideration is early repayment charges (ERCs). These fees can be significant and are typically higher for longer-term deals, so breaking out of a 10-year fix will usually cost more than exiting a shorter 2-year agreement.
Is it worth remortgaging early?
While you’re technically free to remortgage at any time, it only makes sense if it puts you in a better financial position over the long term. The majority of people wait until their fixed-rate deal ends to avoid rolling onto their lender’s typically higher standard variable rate - but in certain situations, remortgaging early can be worth it.
Here are a few reasons why it might make sense:
You’ve found a better deal: If interest rates have dropped since you locked in your current mortgage deal, switching to a cheaper rate could save you money, provided the savings mitigate any ERCs.
You want to access equity: Maybe you need funds for home improvements, repairs, or another major expense. If your home has risen in value or you’ve paid off a good chunk of your mortgage, remortgaging early could let you release some of that equity, even if it means paying an exit fee upfront.
You need more flexibility: Life can be unpredictable. If your current mortgage doesn’t offer features like payment holidays or the ability to make overpayments, then switching to a more flexible product could offer peace of mind, especially if you're planning ahead for the years to come.
Can you remortgage early with the same lender?
Yes, you can switch to a new mortgage deal with your existing lender before your current one ends, though this is usually referred to as a product transfer rather than a full remortgage.
Staying with the same lender has its advantages. The process tends to be faster and easier because they already know your financial background. Plus, it often comes with lower costs - there are typically no legal or valuation fees involved, and in some cases, the lender might waive ERCs. Select lenders also offer loyalty incentives like preferential rates for existing customers.
That said, it’s still worth shopping around. Your current lender might not offer the most competitive deal available. Exploring options from other providers could uncover lower rates or better terms which make switching worthwhile, even with the added effort and potential fees involved.
Should I remortgage early?
Deciding whether to remortgage before your current deal ends comes down to a simple question: will switching save you money or offer better flexibility, and do those perks offset any costs involved?
Since mortgage deals and personal finances vary so widely, there’s no one-size-fits-all answer. That’s why talking to a mortgage broker can be a smart move. An experienced adviser will know which lenders offer early remortgage options, how long offers are valid for, and which products are best suited to your specific needs.
At The Mortgage Genie, we specialise in helping homeowners navigate the remortgage process. With access to a broad range of lenders and exclusive deals, our expert brokers can help you find the right fit. And to make life easier, we’ll take care of the paperwork from start to finish, saving you both time and stress.
Give us a call at 01915809890 today to get started. And why find out how much you could save on repayments right now by using our remortgage calculator?
