For many homeowners, remortgaging is something that only comes to mind when a fixed-rate mortgage is approaching its end date. However, waiting until the final few weeks before your current deal expires is not always the only option available.
In reality, many lenders allow borrowers to begin the remortgage process months before their existing mortgage product ends. Understanding how early you can remortgage, and what implications this may have, can help you avoid unnecessary costs, secure greater certainty, and ensure you have enough time to review your options properly.
The answer depends on several factors, including the type of mortgage you currently hold, whether any early repayment charges apply, and the policies of the lender you are moving to.
This guide explains how early remortgaging works, when it may make sense, and what homeowners should consider before making a decision.
What Does Remortgaging Mean?
A remortgage involves replacing your existing mortgage with a new one.
This could be:
- Moving to a new lender
- Taking a new deal with your current lender
- Borrowing additional funds
- Changing the mortgage term
- Moving from a fixed rate to a variable rate
- Moving from a variable rate to a fixed rate
Many homeowners remortgage simply because their current mortgage deal is ending and they want to avoid moving onto their lender's standard variable rate.
Others use remortgaging as an opportunity to restructure their finances or access equity built up within their property.
Is There A Minimum Time Before You Can Remortgage?
There is no universal rule that applies to every mortgage.
Technically, you can often remortgage at almost any point during your mortgage term.
The more important question is whether doing so makes financial sense.
Most mortgage products include specific conditions that may create costs if you leave the deal early. These costs are commonly known as Early Repayment Charges (ERCs).
If no ERCs apply, a borrower may be able to remortgage whenever they choose, subject to lender approval and affordability requirements.
If ERCs are in place, it becomes important to assess whether the benefits of remortgaging outweigh the costs involved.
How Early Before The End Of A Fixed Rate Can You Remortgage?
This is where many homeowners become confused.
Most lenders allow borrowers to secure a new mortgage deal several months before their current mortgage expires.
Typically, a remortgage offer can be obtained up to:
- Three months before expiry
- Six months before expiry
- Occasionally longer, depending on the lender
The new mortgage does not necessarily start immediately.
Instead, the offer is secured and can be arranged to complete when the existing mortgage deal ends.
This allows borrowers to lock in terms while avoiding early repayment charges that may still apply during the final months of their current deal.
The exact timing varies between lenders, but starting the process several months before expiry is common practice.
Why Do Homeowners Start Remortgaging Early?
Many borrowers assume there is little benefit to acting early.
In practice, there can be several advantages.
- More Time To Compare Options
Mortgage products, criteria and lender appetites can change over time.
Starting early gives borrowers more time to understand the options available and avoid making rushed decisions.
- Avoiding Standard Variable Rates
One of the most common reasons homeowners remortgage is to avoid moving onto their lender's Standard Variable Rate (SVR).
The SVR is often significantly higher than promotional mortgage products.
Starting the remortgage process early helps ensure everything is in place before the existing deal ends.
- Protecting Against Delays
Mortgage applications can sometimes take longer than expected.
Valuations, underwriting requirements, documentation requests and legal work can all create delays.
Beginning the process early reduces the risk of running out of time.
Many borrowers simply prefer knowing their future mortgage arrangements are already in place.
This can make budgeting and financial planning easier.
What Are Early Repayment Charges?
Early Repayment Charges are fees imposed by lenders when a mortgage is repaid during a specific period.
These charges are most commonly found on:
- Fixed-rate mortgages
- Discounted-rate mortgages
- Tracker mortgages with tie-in periods
ERCs are usually expressed as a percentage of the outstanding mortgage balance.
For example:
- 5% in year one
- 4% in year two
- 3% in year three
- 2% in year four
- 1% in year five
On a mortgage balance of £250,000, a 3% ERC would equate to £7,500.
This is why many homeowners wait until the ERC period ends before completing a remortgage.
The potential cost can be substantial.
Can It Ever Make Sense To Remortgage Despite Early Repayment Charges?
Sometimes it can.
There are situations where paying an ERC may still be worthwhile.
Examples could include:
- A significant change in interest rates
- Major changes in personal finances
- Debt restructuring objectives
- Accessing equity for another purpose
- A requirement to change lenders due to changing circumstances
However, this should always involve careful analysis of both the costs and benefits.
The existence of an ERC does not automatically mean remortgaging is unsuitable.
The overall financial impact should be considered.
How Long Does A Remortgage Take?
The remortgage process can vary considerably.
Straightforward cases may complete within a few weeks.
More complex situations may take longer.
Factors that can affect timescales include:
- Property valuation requirements
- Income verification
- Self-employed income assessment
- Credit history reviews
- Legal work
- Additional borrowing requests
A common mistake is assuming the process will be completed quickly.
Starting early provides greater flexibility if unexpected issues arise.
Can You Remortgage With Your Existing Lender?
Yes.
This is often referred to as a product transfer.
Rather than moving to a new lender, you simply select a new mortgage product offered by your current lender.
Product transfers can sometimes be quicker because:
- No solicitor may be required
- Affordability assessments can be simplified
- Property valuations may not be needed
However, remaining with the same lender is not always the best option.
Many homeowners choose to compare the wider market before making a decision.
An independent mortgage broker can help assess whether staying put or moving lender may be more appropriate.
What Happens If You Leave It Too Late?
Delaying a remortgage can create several issues.
The most obvious risk is moving onto your lender's Standard Variable Rate.
This may result in:
- Higher monthly payments
- Increased borrowing costs
- Reduced budgeting certainty
In addition, a last-minute application leaves little room for dealing with complications.
Issues such as valuation concerns, underwriting questions or documentation requests can create pressure if there is insufficient time available.
Many homeowners begin exploring options around three to six months before their current deal ends for precisely this reason.
Factors Lenders Consider When You Remortgage
Even if you have been making payments successfully for years, a new lender will typically assess your application from the beginning.
Areas commonly reviewed include:
Lenders want to understand your ability to maintain repayments.
Recent credit activity, missed payments or adverse events may influence lender decisions.
The amount borrowed compared to the property's value remains an important consideration.
Employed, self-employed and contractor applicants may all be assessed differently.
Loans, credit cards and other financial obligations can affect affordability calculations.
Because lender criteria differ, options available to one borrower may not be available to another.
A Hypothetical Example
Consider a homeowner whose fixed-rate mortgage expires in six months.
Rather than waiting until the final month, they begin reviewing options early.
A mortgage offer is secured several months in advance.
The offer remains valid until the current mortgage deal finishes.
When the fixed-rate period ends, the remortgage completes immediately without the borrower moving onto the lender's standard variable rate.
This approach provides time to deal with underwriting queries and creates greater certainty regarding future payments.
While every situation differs, it illustrates why many homeowners begin the process earlier than they might initially expect.
Common Misconceptions About Early Remortgaging
- "You Have To Wait Until Your Deal Ends"
This is one of the most common myths.
Many lenders allow applications months before the current deal expires.
- "Remortgaging Always Means Changing Lenders"
Product transfers with an existing lender are also a form of remortgaging.
- "Starting Early Costs More"
Beginning the process early does not automatically create additional costs.
In many cases, it simply provides more time to prepare.
- "The Cheapest Rate Is Always The Best Option"
Mortgage decisions should consider fees, flexibility, criteria and long-term suitability, not simply the headline rate.
Frequently Asked Questions
How Early Can You Remortgage Before Your Current Deal Ends?
Many lenders will allow you to secure a new mortgage offer three to six months before your current deal expires, although the exact timeframe varies. This does not necessarily mean your new mortgage starts immediately. Instead, the offer is arranged in advance and completes when your existing deal ends. Starting early gives you more time to compare options, gather documentation, and deal with any underwriting issues before they become a problem.
Can You Remortgage At Any Time During A Mortgage Term?
In principle, yes. There is no law or universal mortgage rule preventing you from remortgaging during a fixed-rate period, a tracker mortgage, or even shortly after taking out a mortgage. The key consideration is whether any Early Repayment Charges (ERCs) apply. Some homeowners remortgage despite these charges because the overall financial benefit outweighs the cost, but this requires careful analysis of the numbers involved.
What Are Early Repayment Charges And How Do They Affect Remortgaging?
Early Repayment Charges are fees imposed by lenders if you repay your mortgage during a specified period, usually while a fixed-rate, tracker, or discounted product is still active. These charges are often calculated as a percentage of the outstanding mortgage balance and can run into thousands of pounds. Before considering an early remortgage, it is important to understand exactly what penalties may apply and whether the potential savings or benefits justify those costs.
Is It Better To Wait Until My Fixed Rate Ends Before Remortgaging?
Not necessarily. Waiting until your fixed rate ends may avoid Early Repayment Charges, but leaving things too late can create other problems. Mortgage applications can take several weeks or even months to complete, especially if there are complexities involving income, credit history, or property valuation. Many homeowners begin the process well before their deal expires to ensure they avoid falling onto a lender's Standard Variable Rate and to provide enough time for the application to complete smoothly.
How Long Does A Typical Remortgage Take?
A straightforward remortgage may complete within a few weeks, but timescales can vary significantly depending on the lender, legal process, valuation requirements, and the complexity of the application. Self-employed applicants, borrowers with multiple income sources, portfolio landlords, and those seeking additional borrowing may find that the process takes longer. Beginning the remortgage process early provides a valuable buffer against delays.
Will I Need A Credit Check When Remortgaging?
If you are moving to a new lender, a credit assessment will usually form part of the application process. The lender will review your credit commitments, repayment history, and overall financial profile. Even borrowers who have never missed a mortgage payment can sometimes encounter issues if their circumstances have changed since they originally took out their mortgage. Product transfers with an existing lender may involve fewer checks, although policies vary.
Can I Remortgage If My Income Has Changed Since I Took Out My Mortgage?
Yes, but the impact will depend on whether your income has increased, decreased, or become more complex. Lenders assess affordability based on current circumstances rather than historic earnings. If you have become self-employed, started receiving bonus income, changed jobs, retired, or experienced a reduction in income, the options available may differ from when you first obtained your mortgage. This is one reason many borrowers seek advice before submitting an application.
What Happens If My Property Has Increased In Value?
An increase in property value can improve your loan-to-value ratio (LTV), which may open access to a wider range of mortgage products. Lenders generally view lower LTV borrowing as lower risk, which can improve product availability. While a higher property value does not guarantee better mortgage terms, it can significantly strengthen your position when reviewing remortgage options.
Can I Borrow More Money When I Remortgage?
Yes. Many homeowners use a remortgage not only to replace their existing mortgage but also to raise additional funds. Common reasons include home improvements, debt consolidation, purchasing another property, funding education costs, or other major expenditures. Any additional borrowing will be subject to affordability assessments and lender criteria, and the purpose of the borrowing may influence which lenders are willing to consider the application.
What Happens If I Do Nothing When My Mortgage Deal Ends?
If you take no action, your mortgage will usually move onto your lender's Standard Variable Rate (SVR). The SVR can change at the lender's discretion and is often higher than the rate available under a fixed or promotional mortgage product. While some borrowers choose to remain on an SVR temporarily, many review their options before reaching this point to maintain greater certainty over their monthly payments and overall borrowing costs.
Is A Product Transfer The Same As A Remortgage?
A product transfer involves switching to a new mortgage deal with your existing lender. Technically, it is a form of remortgaging because you are replacing one mortgage product with another. However, the process is often simpler than moving to a new lender, as legal work, affordability assessments, and property valuations may be reduced or unnecessary. That said, it is still worth comparing the wider market before deciding whether staying with your current lender is the most appropriate option.
When Should I Start Looking At Remortgage Options?
As a general rule, many homeowners begin reviewing their options around three to six months before their current mortgage deal ends. This allows sufficient time to assess the market, compare lenders, gather documentation, complete underwriting, and ensure the new mortgage is ready when the existing deal expires. Starting early can reduce pressure and provide greater flexibility if circumstances change during the application process.
