Should You Remortgage Early? What You Need To Know

remortgage leeds - Wooden blocks with the word Remortgage

If your current mortgage deal isn’t ending anytime soon, you might assume there’s nothing to think about just yet. But that’s not always the case. 

Remortgaging early can sometimes put you in a stronger financial position, if you understand the timing, costs, and potential savings involved. So, should you remortgage before your deal ends? Here’s what you need to know.

 

What does remortgaging early mean?

Remortgaging early simply means switching to a new mortgage deal before your current fixed or discounted rate expires. Most lenders allow you to secure a new deal up to three to six months in advance, but anything before that is usually considered an early remortgage.

 

Why consider remortgaging early?

There are a few situations where acting sooner rather than later makes sense:

1. To secure a better interest rate

Mortgage rates can change quickly. If rates are rising, locking in a new deal early could save you money over the long term, even if your current deal hasn’t ended yet.

2. To avoid moving onto a standard variable rate

If you wait too long, you could automatically move onto your lender’s standard variable rate, which is typically higher and less predictable. Planning ahead helps you avoid this jump in monthly payments.

3. To improve your financial position

If your credit score has improved, your income has increased, or your property value has gone up, you may now qualify for more competitive deals than when you first took out your mortgage.

 

What are the costs to watch out for?

This is where you need to be careful. Remortgaging early isn’t always the right move.

Early repayment charges 

Most fixed-rate mortgages come with early repayment charges if you leave before the deal ends. These can be a percentage of your remaining balance, so it’s important to weigh this cost against any potential savings.

Fees and charges

Arrangement fees, valuation costs, and legal fees may apply when switching deals. Some mortgages include incentives to cover these, but not all do.

 

When does it make financial sense to remortgage?

Remortgaging early tends to make sense if:

  • The savings from a lower interest rate outweigh any early repayment charges
  • You’re approaching the final months of your current deal
  • You want certainty over your future monthly payments
  • Your circumstances have improved, giving you access to better deals

 

A simple calculation, or advice from a mortgage professional, can quickly show whether you’re likely to benefit.

 

Plan ahead

Even if you’re not ready to switch immediately, reviewing your mortgage around six months before your deal ends is a smart move. This gives you time to explore your options, secure a competitive rate, and avoid unnecessary pressure as deadlines approach.

In the right circumstances, remortgaging early can lead to meaningful savings and greater financial stability. But timing and costs matter, so it’s important to look at the full picture before making a decision.

If you’re unsure, getting tailored advice from a mortgage broker can help you weigh up your options and decide what’s right for you.