How early can you remortgage?
You can remortgage at any time during your mortgage term. But there are things to think about if you’re looking to do so, including:
- Early repayment charges – If you switch mortgages before your current plan ends, you may have to pay a fee to your current provider.
- Change in rates – Interests rates can go up and down, which can affect your payments if you switch from a fixed to variable rate
The legal work to change your mortgage deal may take a few months, in which time you’ll be placed on a standard variable rate of interest (SVR). Standard variable rate is the default interest offered by lenders and is likely to be higher than the interest on a mortgage deal, so might cost more for this period.
Have a look around before you commit to a new deal – you can remortgage up to six months before your current deal ends. You won’t be able to remortgage before your deal ends without paying an early repayment charge. You can arrange a new mortgage deal to kick in once your term has come to a close to avoid this.
If you arrange a mortgage deal before your existing deal runs out, you'll avoid been placed onto a standard variable rate.
Make sure you’re getting the best deal for your circumstances by planning ahead, then adding up the charges and costs.
