Can I remortgage before my deal ends?

Yes, you can remortgage whenever you like, however, If you are currently tied into your mortgage deal for a set amount of time (commonly 2, 3 or 5 years) then remortgaging before that end date may lead to a penalty called an early repayment charge.

This can be either a percentage of the outstanding loan or a fixed fee, payable when you remortgage out of your current deal, it should be outlined in your mortgage offer for your current mortgage whether or not there is an early repayment charge associated with your loan, or you can you just contact your lender and find out.

It's important to consider that even though you may be faced with an early repayment charge, it might still work out cheaper for you to remortgage to a lower rate, providing the saving on your new deal can offset the penalty you had to pay to redeem your previous mortgage.

Conversely, if you're thinking about remortgaging early because you're worried about rates going up, we consider that it's usually best to sit tight and see what's available at the end of your current deal. This would allow you to keep your current lower rate until it expires and avoid any early repayment charges. Also, nobody can predict future interest rate changes, and it may be that after remortgaging early, rates come down and leave you stuck on a more expensive deal.

If you're concerned about the future cost of borrowing, speak to your Mortgage Advisor. They'll be able to help you understand the costs involved in remortgaging, but won't be able to confirm whether you will be better off in the long term. The decision ultimately depends on your approach to risk and feelings about the future.

You may also wish to consider why you are thinking about a remortgage, is it to raise funds to consolidate debt or make home improvements? If that's the case then there may be other alternatives to explore, like a further advance with your current lender.

Should you remortgage early?

Arrange a free consultation to get personalised advice on whether you should remortgage early.