When Can You Remortgage?
The first step is to review your mortgage paperwork to check whether exit fees are built into your contract. Can I remortgage early without paying a penalty? If your mortgage has no early settlement charge, you can remortgage whenever you like.
For most people looking into how early can I remortgage, the best solution is to start comparing remortgage offers with an independent broker around six months before your agreement ends.
How Soon Can You Remortgage: Myth Busting
There are many misconceptions about how remortgage works during a fixed period, so we've worked through some common untruths to ensure you have access to the facts before deciding when to remortgage.
1. Can You Remortgage With the Same Lender?
Yes, but it isn't always the best option. Many borrowers assume their bank will reward loyalty, but shopping around often means you can find a better remortgage rate than through your existing provider.
2. Can I Remortgage Early, Even if That Means Exit Penalties?
You can – exit fees don’t prohibit you from remortgaging early but must be added to your cost calculations to ensure it's worth remortgaging. If you have very low-interest rates available from an alternative lender, it might make sense to accept the exit charge and proceed with your remortgage.
3. Can I Remortgage Early Using a Broker?
An independent broker isn't mandatory but can make finding the best remortgage offers that match your borrowing requirements significantly easier. Whole-of-market brokers know how remortgage works, can recommend lenders, and even negotiate the rates you pay.
4. When Can I Remortgage By Myself?
You can remortgage at any point, but it may not be quicker or cheaper to go it alone. The remortgage market is vast, and mistakes in your paperwork, choosing an unsuitable lender, or failing to meet eligibility criteria can mean you incur application costs without securing the remortgage you need.
How Soon Can You Remortgage - & What Will it Cost?
People avoid remortgaging in a fixed contract because they are worried about hefty exit charges, which can be a good reason to stay with your current lender until the contract ends.
Understanding the implications of remortgaging early will help you assess when can I remortgage and whether it is worthwhile.
Because of how remortgage works, you might incur:
- Exit charges based on a percentage of the outstanding balance.
- Legal fees for managing the formal paperwork.
- Valuation costs for a new lender to assess the value of your property.
How early can you remortgage without increasing the associated costs? Much depends on your agreement, which will normally be for a period of between two and five years. However, legal and valuation charges may be payable regardless of whether you need to pay an exit charge.
When Can I Remortgage Using an Independent Broker?
If you’re wondering how early can I remortgage or are concerned your current rates are uncompetitive, an independent broker can assess your existing mortgage and make recommendations.
Whole-of-market brokers have access to a broad range of lenders and products. We can advise on the potential costs and which remortgage providers will most likely offer lower rates, product charges and approval based on your borrowing requirements.
Can you remortgage with the same lender through a broker? Absolutely – if your current lender has an excellent product alternative, we can liaise directly to ensure your remortgage goes smoothly.
Can I Remortgage Early on a Buy-to-Let?
A similar scenario applies to buy-to-let mortgages, and depending on how remortgage works within your contract, you may be able to apply for early repayment. However, interest rates on buy-to-lets are normally higher than on residential mortgages, and remortgaging is more likely to reduce repayment costs.
How soon can I remortgage a buy-to-let? You’ll usually find there is a six-month minimum period, after which time you can remortgage, but you will need to pay higher exit fees if there is still a long period left to run on your fixed-term deal.
