Yes, you can remortgage before your fixed rate ends. An early repayment charge usually applies, but when rates have moved significantly the savings can outweigh the cost. Woodhall Mortgages calculates both sides of the equation so you can make an informed decision.
Initial discussion free. A broker fee of £299 is payable if you choose to proceed following a formal mortgage offer.
Calculate Your Early Remortgage OptionsYes. You can remortgage at any point during a fixed rate deal. The practical question is whether it is financially worthwhile once the early repayment charge is factored in.
Most fixed rate mortgages include an early repayment charge for exiting the deal before the agreed end date. This charge exists because lenders fund fixed rate products in the money markets and need to recover costs when a borrower leaves early. The charge is typically expressed as a percentage of the outstanding mortgage balance, often between 1% and 5%, and usually reduces in steps as the deal progresses.
Whether remortgaging early makes financial sense depends on a straightforward comparison: how much you would save by switching to a lower rate over the remaining term, set against the cost of the early repayment charge. When rates have moved significantly since you took out your deal, the savings can exceed the charge by a material amount. A whole-of-market broker runs this calculation before you commit to anything.
An early repayment charge is the cost of exiting a mortgage deal before it ends. Understanding how it is calculated is the first step in deciding whether remortgaging early is worthwhile.
The charge is calculated as a percentage of the outstanding balance at the time you exit the deal. The percentage usually reduces as you move through the fixed term. For example, a 5-year fix might charge 5% in year one, 4% in year two, 3% in year three, and so on, dropping to zero when the deal ends.
On a £250,000 mortgage, a 3% ERC equals £7,500. Whether this is worth paying depends entirely on the monthly savings available from the new rate. A broker calculates the breakeven point precisely before recommending whether to switch.
Early repayment charge structures vary between lenders and products. The exact percentage and calculation method for your mortgage is set out in your original mortgage offer document and in your lender's current redemption statement. Request a redemption figure from your lender before making any decisions, or ask a broker to obtain it for you.
The decision comes down to a simple but important calculation: the total savings from the new rate versus the total cost of the early repayment charge. These are the situations where the numbers typically fall in each direction.
This illustrative example shows how to calculate whether paying an early repayment charge is worthwhile. The same calculation applies to any remortgage where an ERC is involved.
This example shows why the calculation matters. The saving exists but the breakeven is over two and a half years, suggesting waiting may be better. Every situation is different. A broker runs the exact numbers for your mortgage before any recommendation is made. Figures are illustrative only.
These figures are illustrative and based on an interest-only comparison. Your actual saving depends on full mortgage terms, arrangement fees and individual circumstances.
Get advice on your figuresA product transfer lets you move to a new rate with your existing lender without paying the early repayment charge. It is often the most cost-effective route when your deal is ending soon or when market rates are not significantly better elsewhere.
In a product transfer, you switch to a new mortgage product offered by your current lender without changing the mortgage itself. Because you are not repaying the loan, the early repayment charge typically does not apply. This makes product transfers particularly attractive in the final months of a fixed rate deal when the ERC is still running but market rates have moved.
The limitation of a product transfer is that you are restricted to the rates your current lender offers. A whole-of-market broker compares your lender's product transfer rates against the full market before advising whether staying with the same lender or switching delivers better value. Sometimes the product transfer rate is competitive; sometimes a full remortgage to a new lender saves more.
Your early repayment charge drops to zero at the end of your fixed rate period. At that point you can remortgage to any lender freely. Most lenders allow you to apply for a new deal and lock in a rate up to six months before your current deal ends, with the new rate starting automatically on the expiry date. This means you can secure a new deal without paying any charge, as long as you apply early enough. See our fixed rate ending guide for how this works in practice.
The remortgage process takes time. Starting early protects you from reverting to your lender's standard variable rate between deals.
Starting six months before your deal ends gives the most flexibility. A new rate secured now does not mean you are committed to it immediately : most products allow you to lock in the rate but only start paying it when your current deal ends, subject to lender criteria and terms.
We calculate the exact saving from switching now, compare it against your early repayment charge, identify the breakeven point, and compare your lender's product transfer options against the full market before making any recommendation.
Initial discussion free. A broker fee of £299 is payable if you choose to proceed following a formal mortgage offer. Full fee details are explained before you proceed.
Calculate Your Early Remortgage OptionsWe calculate the precise saving from switching, compare it against your early repayment charge, identify the breakeven point and compare product transfer options against the full market before making any recommendation.
A broker fee of £299 is payable if you choose to proceed following a formal mortgage offer. Full fee details are explained before you proceed. We may also receive commission from the lender. Your home may be repossessed if you do not keep up repayments on your mortgage.
Calculate Your Early Remortgage OptionsWoodhall Mortgages is authorised and regulated by the Financial Conduct Authority. Firm reference number 762513. Woodhall Mortgages is a whole-of-market mortgage broker. We consider a comprehensive range of mortgages from across the market, but not all lenders or products may be included.
A broker fee of £299 is payable if you choose to proceed following a formal mortgage offer. Full fee details are explained before you proceed. We may also receive commission from the lender. Your home may be repossessed if you do not keep up repayments on your mortgage.
Buying a home or reviewing your mortgage can feel complicated, but it doesn’t have to be. A quick conversation can give you clarity on your options, your budget, and the next realistic steps. There is no obligation and no pressure, just straightforward guidance tailored to you. Complete the short form below and we will be in touch to help you move forward with confidence.
