Can I remortgage early?

With rates on the rise, you may be wondering if it’s worth remortgaging early. You could lock into a fixed rate now, which could prevent you from having to pay more in the future. 

Remortgaging early might be the right thing to do, but it’s worth looking at the whole picture before making a final decision. 

Let’s talk through the remortgage process, the benefits of remortgaging, and any potential pitfalls you may encounter.

So, what is the remortgaging process?

Remortgaging is when you consider moving your mortgage from one deal to another, either with the same lender or a new one.

In the same way that you’d look for the cheapest phone bill or insurance deal, remortgaging gives you the opportunity to shop around. This means you can decide if your current mortgage is still the best option for you.

Like when you took out your original mortgage, lenders will still need to make sure you can make your monthly repayments. Therefore, you’ll still need to submit proof of income, and you may even need to undergo new credit checks. 

If you’re interested in finding out how much you could borrow, why not check out our monthly repayments calculator? This could give you an idea of what you can expect to pay each month. 

What is early remortgaging?

Remortgaging early is a simple process. It means switching from one deal to another before your current mortgage is up. There are a handful of reasons why you may consider an early remortgage and each person will have their own, unique circumstances.

What are the benefits of remortgaging my home?

There are many reasons people might want to remortgage. It isn’t just about saving money, though that could be a significant benefit. Other reasons include:

·   To release equity from your home to fund renovations

·   To release equity to help pay off debts

·   Your current mortgage rate is up for renewal

·   To make overpayments

If I remortgage early will there be an early repayment charge?

While remortgaging early can have its benefits and potentially help you save money, you may need to pay an early repayment charge. You may also need to pay an exit fee, so it’s well worth factoring these costs into your decision. 

Can I remortgage early if I am on a fixed rate?

Legally, there is nothing stopping you from remortgaging early, even if you are on a fixed rate. The same charges as above may still apply, so you’ll need to weigh up these additional costs when making your decision.

What’s next?

Remortgaging doesn’t have to be an overwhelming process. In fact, it could save you money, help free up equity, and give you the option to make overpayments. If you’re thinking about remortgaging, or want some guidance regarding your options, then speak to one of our advisers.

 

Note: You may have to pay an early repayment charge for your existing lender if you remortgage early.  

 

Because we play by the book we want to tell you that…

Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

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