You can apply to remortgage before your current deal ends, but whether you can complete the switch – and whether it makes financial sense – will depend on your lender’s terms, any early repayment charge, the costs of the new mortgage, affordability and the deals available to you.
Remortgaging is the process of paying off your existing mortgage and getting a new one. And timing is key.
If you’re part-way through a fixed rate or tracker deal, or you’re just trying to figure out the right time to start a remortgage, this guide is for you.
This article is for general information only and isn't personal financial advice.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Yes. You can usually apply to remortgage while you’re part-way through a fixed, tracker or discount-rate deal, subject to lender criteria and affordability. But completing the switch before your current deal’s early repayment charge period ends could trigger a significant early repayment charge. Compare that charge and any other fees with the potential savings before deciding.
An early repayment charge, or ERC, is a fee some lenders charge if you repay all or part of your mortgage before a date set out in your mortgage terms – for example, by switching lender or exceeding an agreed overpayment allowance.
Many people start reviewing their options around six months before their current deal ends. Some lenders allow eligible existing customers to reserve a new deal up to six months ahead, while the validity period of a remortgage offer from a new lender varies. Check the offer expiry date and arrange for the new deal to begin after any early repayment charge period ends.
If you reserve a new deal with your existing lender and a lower like-for-like rate becomes available before it starts, the lender may allow you to change to it. This depends on the lender, the product and your eligibility, so check the terms before relying on this.
Although timings vary between lenders and according to your own circumstances, here’s a rough timeframe.
1. Around six months before your deal ends. Review your current mortgage, including its end date, early repayment charge period and any exit fees. You can then start comparing your options.
2. Around three to four months before. If you plan to switch lender, gather your documents and consider applying, taking account of the new lender’s processing times and the offer expiry date.
3. Around one to two months before. Check that the new mortgage is on track to complete after your current deal ends or after any early repayment charge period expires.
It’s usually pretty straightforward to remortgage with your current lender and this is called a “product transfer”. If you want to do this early, before your current deal ends, your lender may even waive the ERC if you’re in the last two or three months of your deal. Or you can ask to line up the new deal to start when yours ends.
A product transfer generally involves less admin, fewer checks and lower costs - you’re unlikely to need a new valuation or to pay legal fees.
But bear in mind that there may be cheaper rates if you look beyond your current lender.
An ERC is a fee that many lenders charge if you pay off your mortgage earlier than agreed, or overpay it by more than agreed in the terms of the deal.
ERCs are usually between 1% and 5% of the outstanding balance, meaning they can be thousands of pounds. This can taper away towards the end of the deal. They can also be a fixed fee, but this is less usual.
ERCs are common in fixed rate deals, and some tracker and discount rate deals have them. They usually apply during the initial period of the deal - for example, during the first two years in a two-year fixed rate mortgage. The charge is to make up for the interest the lender was expecting to get during the remaining period of the deal.
With tracker and discounted deals, your monthly payments could go up or down.
You might have to pay an ERC if:
During the final 2 or 3 months of your deal, your lender may waive the ERC but it’s important to check before you make any decisions.
Find out more about early repayment charges in our full guide.
To answer this, you’ll need to calculate whether the costs outweigh the savings if you remortgage early. Costs include the ERC plus any fees for the new deal. Savings might come in the form of a better interest rate, and you’ll need to consider how long you’d be getting those savings.
For many people, it makes sense to look for a better deal and lock it in early, but wait until they no longer have to pay the ERC and make the switch then.
Here’s an example: if your ERC and fees total £3,000 but switching would save you £1,800 over the period of the deal, you'd be worse off. There’s more on this in our guide to early repayment charges.
Here are some scenarios and what you might want to consider with each one.
You could chat with one of our expert mortgage advisers, for free, to work through your options.
Options available to you will depend on lender criteria, affordability and your personal circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Habito by Monzo is a mortgage broker, not a lender. We’re authorised and regulated by the Financial Conduct Authority (FRN 714187). This content is intended for general guidance and is not a substitute for personalised mortgage advice.
Knowing when to start the remortgage process can put you on the front foot when it comes to getting the best deals. You’ll likely want your new deal to begin as the old one ends, so you avoid sliding onto your current lender’s SVR, which may be higher than the rate on your current deal.
So, when should you remortgage? Generally speaking, the best time to start looking for a new mortgage deal is around six months or so before your current deal ends. This gives you lots of time to weigh up your options and calculate the costs, with plenty of buffer for your remortgage application to be processed.
If you’re switching to a new lender, it will need to carry out affordability checks and a valuation of your home, and there’s some legal admin when you switch lenders.
Mortgage offers are valid for a set period, which varies between lenders and products. Check the offer’s expiry date so you can plan the switch around the end of your current deal.
Mortgage rates frequently change, and trying to time the market is pretty much impossible. So whether now is a good time depends less on predicting rates and more on when your current deal ends and the costs - such as the ERC and any fees - and savings you’d get by switching.
You’ll need to weigh up the costs and savings when making the decision, but here are some common reasons homeowners remortgage early:
Various factors can mean waiting might make more sense than remortgaging early. That could be a high ERC that outweighs the savings you’d make, or a small balance remaining on the mortgage and fees eating up any gain.
Or it could be a change in your life that affects what mortgage lenders believe you could afford, such as a new job, or being on parental leave - when you remortgage, affordability and credit are reassessed.
If you’re about to start a new job, you may find it tricky to qualify for a new mortgage, even if your salary has gone up. That’s because lenders tend to be a bit spooked by change; they see it as a risk and they know that new jobs can come with probationary periods.
If you’re currently on — or about to go on — maternity or parental leave, lenders will want assurances that you’ll be returning to work eventually and you’ll be able to afford the repayments. They may write to your employer to confirm your return to work date and salary.
If you’re planning to remortgage any time soon, it’s a good idea to check your credit history and try to avoid applying if you’ve recently taken on more debt. There’s more on this in our guide to credit scores.
Find out about what can affect how easy it is to remortgage.
When you remortgage to a new lender, expect to pay a property valuation fee, and potentially a mortgage arrangement or product fee as well as legal (conveyancing) fees. Some brokers also charge a fee (Habito by Monzo doesn’t!). Some lenders include valuation or legal work in their remortgage deals. All this is in addition to any ERC you face if you remortgage early.
There’s more on this in our guide to remortgaging costs.
Figuring out your remortgage options and timing can be tricky so you might want to chat with an expert before you dive in. You can chat with a Habito by Monzo mortgage expert for free. You might want to compare remortgage deals in our table to give you an idea of the latest rates, too.
Whether remortgaging early is right for you will depend on factors like early repayment charges, fees, affordability checks, and the deals you qualify for. Options available to you will depend on lender criteria, affordability and your personal circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Habito by Monzo is a mortgage broker, not a lender. We’re authorised and regulated by the Financial Conduct Authority (FRN 714187). This content is intended for general guidance and is not a substitute for personalised mortgage advice.
In principle, you can remortgage any time you like subject to affordability and lender criteria. But leaving a fixed deal early typically means you’ll have to pay an ERC. Some tracker and discount deals also have an ERC.
It’s possible to remortgage early without paying an early repayment charge but it depends on your mortgage terms and timing. If you arrange for your next deal to start after your current deal or early repayment charge period ends, the charge may not apply. Standard variable rate mortgages often have no early repayment charge, but check your mortgage terms for any other fees.
You can often start looking around six months before your current deal ends, and some lenders let you secure a deal that far ahead. Check the new mortgage offer’s expiry date and any conditions that apply.
Applying to remortgage with a new lender will usually involve a hard credit check, which can cause a small, temporary change to your credit score. A product transfer with your current lender may involve different checks. Keeping up your repayments supports your credit history over time.
Some tracker and discount mortgages have an ERC so it’s important to check the small print if you have one of these deals. There’s usually no ERC if you’re on your lender’s SVR, although there may be a small admin fee.
Information is correct at the time of writing and may change. Always check the latest terms and conditions before taking out a product.
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