Around 1.8 million UK homeowners will reach the end of their fixed-rate mortgage deals in 2026. But plenty more are wondering whether they should remortgage before their deal ends, either to take a lower rate, release some equity, or simply because their financial situation has changed.
The answer is yes, you can remortgage early. But whether you should is a different question. This guide covers everything: what early remortgaging means, how much it can cost, when it makes sense, and exactly how to do it.
Can You Remortgage Before Your Fixed Rate Ends?
Yes. There is nothing stopping you from remortgaging before your current deal expires. However, if you are within the fixed term of your mortgage, you will almost certainly face an early repayment charge (ERC) from your existing lender. This fee exists because when your lender agreed to fix your rate, they committed to a specific return on the money they lent you. If you leave early, they miss out on that interest and the ERC is how they recover some of it.
Whether it makes financial sense to pay that charge and remortgage early depends on how much you can save by switching to a lower rate versus how much the ERC will cost you. We will walk through how to calculate that later in this guide.
It is also worth knowing that most lenders allow you to lock in a new remortgage rate up to six months before your current fixed deal ends without triggering the ERC, because the new mortgage does not complete until your current one expires. Starting early is almost always the smart move.
Why Do People Remortgage Early?
To Secure a Lower Interest Rate
This is the most common reason. If interest rates have dropped significantly since you took out your current mortgage, the monthly savings from switching to a lower rate might outweigh the cost of the ERC. This requires careful calculation, but for some borrowers the numbers genuinely do stack up.
In 2026, many borrowers who took out 5-year fixed deals in 2021 at rates below 2% are now coming off those deals and facing much higher rates. The dynamic is different for those on more recent deals at 4% to 5%, but rate movements still create opportunities.
To Release Equity from Their Home
If your property has gone up in value since you bought it, you may have built up significant equity. Remortgaging early or even at the end of your deal lets you release some of that equity as a lump sum. People use released equity for home improvements, paying off other debts, or funding major life events. If you remortgage to release equity during your fixed period, the ERC still applies to the existing balance, so the cost needs to be weighed carefully.
To Consolidate Debt
Some homeowners remortgage to roll higher-interest debt, such as personal loans or credit cards, into their mortgage. Because mortgage rates are generally lower than unsecured credit rates, this can reduce monthly outgoings significantly. However, consolidating unsecured debt into a mortgage means you are securing previously unsecured debt against your home, and you could end up paying more in total interest over a longer term. It is worth getting advice before going down this route.
To Change Mortgage Type (Fixed to Tracker or Vice Versa)
Sometimes you want to switch from a fixed rate to a tracker, perhaps because you believe rates are about to fall and you want to benefit automatically. Or you might want to move from a tracker to a fixed rate because you want the certainty of set monthly payments. If you are within your fixed or tracker period, switching early means paying the ERC, so the motivation needs to be strong enough to justify the cost.
Because Their Financial Circumstances Have Changed
Life does not always go to plan. A change in income, a new job, a growing family, or a change in relationship status can all make your current mortgage less suitable than it was when you took it out. In some cases, remortgaging early, even with an ERC is the right move to bring your mortgage back in line with your current reality.
What are Early Repayment Charges (ERCs) and How Much Do They Cost?
An early repayment charge is a fee your lender applies when you repay part or all of your mortgage before the fixed or discounted period ends. The charge is designed to compensate the lender for the interest income they will lose when you leave early.
ERCs apply to most fixed-rate mortgages and some tracker mortgages. Standard variable rate (SVR) mortgages generally do not have ERCs because the lender is not locked into a set rate either.
How are ERCs Calculated?
ERCs are usually calculated as a percentage of the outstanding mortgage balance. For a standard 5-year fixed mortgage, the ERC typically decreases each year:
| Year of Fixed Period | Typical ERC (% of outstanding balance) |
| Year 1 | 5% |
| Year 2 | 4% |
| Year 3 | 3% |
| Year 4 | 2% |
| Year 5 | 1% |
On a £250,000 outstanding mortgage balance, a 3% ERC works out to £7,500. That is a high cost, and it means you need to be confident the savings from your new deal outweigh both the ERC and any fees on the new mortgage.
Some lenders use a flat ERC for the full fixed period rather than a reducing schedule. Always check your original mortgage offer documents to find out exactly what applies to your deal. Your lender can also provide a redemption statement showing the current ERC and the outstanding balance.
Is it Worth Paying an ERC to Remortgage Early?
Sometimes yes. The rule of thumb used by most brokers is that paying an ERC is worth it when your annual savings on the new rate are larger than the ERC divided by the number of months remaining on your current deal.
Example: You have 24 months left on your fix. Your current rate is 5.5% and a new deal is available at 4.3% on a £220,000 outstanding balance. The monthly savings are roughly £130. Over 24 months, that is £3,120 in savings. If your ERC is £2,200, switching makes sense because you save more than the charge costs you even before accounting for the ongoing savings after the 24-month period.
However, you also need to factor in arrangement fees on the new deal, valuation fees, and legal costs. A good mortgage broker will run through all of these numbers with you so you know exactly where you stand before making any decision.
AtBM14 Finance, our advisors do this calculation for every client. We look at your current deal, your ERC schedule, what is available in the market right now, and we give you a clear recommendation. We cover first-time buyer mortgages, remortgaging, buy-to-let, and home mover guidance and we also provide protection (insurance) services including life insurance, income protection, critical illness cover, over 50s cover, whole of life insurance, and buildings and contents insurance. Speak to us before you make any move on an early remortgage.
How Soon Can You Remortgage After Buying a Home?
Technically, you can start a remortgage application as soon as you have completed your purchase. But there are practical and lender-imposed limits to be aware of.
The Six-Month Rule: What is it and Does it Apply to You?
Most lenders have a policy of not offering a remortgage on a property that has been owned for less than six months. This is not a legal requirement, it is a lender policy designed to protect against mortgage fraud. If a property is sold and immediately remortgaged at a higher value, it can be a sign of fraud, so lenders prefer to see a period of ownership first.
There are exceptions. Some specialist lenders will consider remortgages within six months. If you have a specific reason like having bought a property at auction for a significant discount, there are lenders who will look at this on a case by case basis. A whole-of-market broker can identify which lenders are open to this.
What is a Day One Remortgage?
A day one remortgage is exactly what it sounds like, a remortgage that is arranged from the day of purchase, or very shortly after. These are available through a small number of specialist lenders and are usually only considered in specific circumstances, such as when a property was purchased with a bridging loan and the borrower needs to replace it quickly with a long-term mortgage.
Day one remortgages are not standard products. They are not something most first time buyers or residential borrowers need to consider. But they do exist, and a broker can point you in the right direction if your situation calls for it.
When is the Best Time to Start the Remortgage Process?
Remortgaging 6 Months Before Your Deal Ends
Six months before your current fixed deal ends is the right time to start your remortgage. Most lenders will let you lock in a new rate up to six months in advance. The beauty of this is that the new deal does not start until your current one expires so there is no ERC to pay.
Locking in a rate early also protects you from upward rate movements. If rates rise between now and when your deal ends, you are already secured. And if rates fall, a good broker will monitor the market and switch you to a better deal before you complete, giving you the best of both outcomes.
With rates having risen slightly due to global uncertainty, locking in a deal now, if your fix ends within six months, makes a lot of sense. Waiting carries the risk of rates rising further before you secure anything.
How to Remortgage Early: Understand Step by Step
Step 1: Check Your Current Deal and Any ERCs
Before you do anything else, find your original mortgage offer document and look up your ERC schedule. You need to know exactly how much you will be charged if you leave now versus in three months, six months, or at the end of the fixed period. If you cannot find the document, contact your lender’s redemption department and ask for a redemption statement.
Step 2: Find Out Your Loan-to-Value (LTV) Ratio
Your LTV is your outstanding mortgage balance expressed as a percentage of your property’s current market value. If your home has gone up in value since you bought it, your LTV may have improved, which means you could access better rates than when you first took out the mortgage. Get an idea of what your property is worth using recent sold prices in your area, or ask a broker to arrange a valuation.
Step 3: Compare Remortgage Deals Across the Market
Use a whole-of-market broker to compare what is available. Do not just go to your existing lender. A broker will search across 90 or more lenders, including deals that are not available directly to customers, and will factor in all fees so you can compare the true cost of each deal rather than just the headline rate.
Step 4: Apply and Lock in Your New Rate
Once you have chosen a deal, apply for it. If you are remortgaging at the end of your current deal, your new rate will be locked in now and the mortgage will complete when your existing deal expires. If you are remortgaging mid-deal, the process will complete sooner and your ERC will be applied to your current outstanding balance at that point.
A remortgage typically takes between six and eight weeks to complete, though it can be faster if you are doing a product transfer with your existing lender.
Step 5: Complete the Legal Process
For a full remortgage with a new lender, you need a solicitor to handle the legal work. Some mortgage deals include free legal work as an incentive. Your solicitor will handle the transfer of the mortgage from your old lender to the new one, and you will sign the new mortgage deed. Once this is done, your new deal is in place.
What are the Costs of Remortgaging Early?
Early Repayment Charges
As covered above, this is usually the highest cost. On a £250,000 mortgage with a 3% ERC, you are looking at £7,500. Always confirm the exact figure from your lender before proceeding.
Arrangement / Product Fees
The new mortgage you are moving to may have an arrangement fee, typically between £999 and £2,000. You can add this to the mortgage, but you will then pay interest on it over the full term. On some lenders, fee-free deals exist, though they usually come with a slightly higher interest rate. Your broker will work out which option is cheaper overall for your loan size.
Valuation Fees
The new lender will need to value the property. Some deals include a free basic valuation. Others charge between £150 and £1,500 depending on the property value. Make sure you know whether a valuation fee applies before you commit to a deal.
Legal / Conveyancing Fees
A full remortgage with a new lender requires legal work, usually costing between £500 and £1,500. As mentioned, some mortgage deals include free legal work as an incentive, which can make them a better choice even if the interest rate is not quite the lowest available. A product transfer with your existing lender avoids this cost entirely.
What Happens if You Don’t Remortgage Before Your Deal Ends?
Understanding the Standard Variable Rate (SVR) Trap
When your fixed or tracker deal ends, your lender automatically moves you onto their standard variable rate (SVR). The average SVR from major UK lenders is currently around 6.87%. If your fixed rate was 4.5%, moving to an SVR of 6.87% on a £200,000 mortgage adds around £200 to £250 to your monthly payment, over £2,400 more per year.
The SVR trap is very real. Many borrowersdo not realise they have moved onto it until they notice their payments have gone up. The solution is simple: start your remortgage process at least six months before your current deal ends, lock in a new rate, and make sure you are never paying the SVR for longer than a month or two.
If you are already on an SVR, it is not too late. Most SVR mortgages do not have ERCs, so you can switch at any time without a penalty. Contact a broker and get onto a better deal as quickly as possible.
Should You Use a Mortgage Broker to Remortgage Early?
Yes and this is especially true when you are remortgaging early and an ERC is involved. The calculations are more complex when you factor in the ERC, the new deal’s fees, the rate savings, and how long you have left on your current deal. A broker does all of this for you.
A whole-of-market broker also has access to deals from 90 or more lenders, including products that are not available directly. In a market where rates are changing quickly, that breadth of access makes a real difference. The best deal for your LTV, income, and credit profile may not be from a high-street bank.
Going directly to your existing lender for a product transfer is quicker and simpler, but you are only seeing what that one lender can offer. A broker will tell you whether your lender’s product transfer deal is competitive or whether the full market offers something meaningfully better.
My experience from working with buyers and remortgagers over many years is this: the clients who involve a broker early, well before their deal ends, almost always get a better outcome than those who leave it to the last minute or go straight to their existing lender. The mortgage market is competitive and complex, and having someone in your corner who understands it makes a genuine difference.
Final Words
Remortgaging early is possible, and in the right circumstances, it makes very good financial sense. The key is doing the maths properly, weighing your ERC against the potential savings from a new rate, and factoring in all the costs involved. Get it right, and you could save thousands over the remaining life of your mortgage.
BM14 Finance is here to help you get it right. Our experienced advisors will review your current deal, calculate whether remortgaging early makes sense for you, and search the whole market for the best available deal. We cover remortgaging, first-time buyer mortgages, buy-to-let, and home mover guidance as well as a full range of insurance services including life insurance, income protection, critical illness cover, over 50s cover, whole of life insurance, and buildings and contents insurance. Do not leave your mortgage to chance. Contact BM14 Finance today for a free, no-obligation conversation with a real advisor.