You do not have to wait until your fixed deal ends to remortgage, but doing it early usually comes at a cost. This guide explains whether you can remortgage before your fixed deal ends, the early repayment charge involved, when it might still be worthwhile, and the alternatives to consider.
Yes, but usually with a charge
You can remortgage before your fixed deal ends, but in most cases you will face an early repayment charge for leaving your current deal early. This charge, often between 1% and 5% of your outstanding balance, can be substantial, as our guide to early repayment charges and how to avoid them explains. So while remortgaging early is possible, the charge is the main thing to weigh before deciding whether it is worth it.
How the early repayment charge works
The early repayment charge is a percentage of what you owe, set out in your mortgage paperwork, and it often reduces as you approach the end of your deal. On a £200,000 balance, a 2% charge would be £4,000. This is the cost of leaving the fixed period early, and it exists because the lender expected to receive interest from you over the full deal. Knowing your exact charge is the starting point for any decision.
When it might be worth it
Remortgaging early can be worth it if rates have fallen enough that the savings from a new deal outweigh the early repayment charge, even after paying it. For example, if switching saves more over the new deal than the charge costs, you come out ahead. This is most likely when your current rate is much higher than today's deals, but it always needs careful calculation rather than assumption.
Doing the maths
To decide, compare the early repayment charge against the savings from the new deal over a sensible period. Work out your current monthly payment, the payment on the new deal, and the monthly saving, then see how long it takes the savings to cover the charge and any fees. If you save enough quickly, switching early may make sense; if not, waiting until the charge falls away is usually better.
Securing a deal early instead
Rather than paying a charge to switch now, you can often secure a new deal in advance and have it start when your current deal ends. Because mortgage offers are typically valid for around six months, you can lock in a rate ahead of time, avoiding both the early repayment charge and the standard variable rate, as our guide to the best time to remortgage explains.
Porting your mortgage instead
If your reason for remortgaging early is that you are moving home, you may be able to port your existing deal to the new property instead of repaying it, often avoiding the early repayment charge. Porting keeps your current mortgage rather than ending it, though the lender will reassess your circumstances and the new property. This can be a way to move without triggering the charge, depending on your lender's rules.
Changing your deal at the right time
For most people, the cheapest approach is to time their switch for when the fixed deal ends and the early repayment charge no longer applies, whether through a product transfer or a full remortgage, as our guide to what happens when your fixed rate ends explains. Planning ahead so a new deal is ready then avoids both the charge and the costly standard variable rate.
Getting advice
Because remortgaging early involves weighing a charge against potential savings, it is an area where advice can be valuable. A mortgage adviser can calculate whether switching early makes financial sense in your case, taking account of the charge, fees and the new rate. Given the sums involved, getting this calculation right matters, and professional help can ensure you do not pay a charge that is not actually worthwhile.
Why the charge exists
The early repayment charge exists because, when you take a fixed deal, the lender commits to that rate for a set period and expects to earn interest over it. Leaving early deprives them of that, so the charge compensates them. Understanding this helps explain why the charge can be sizeable, and why it usually only applies during the fixed period rather than after it has ended.
An example calculation
Suppose you owe £180,000 on a five-year fix with a 3% early repayment charge, and switching to a new deal would save you £120 a month. The charge would be £5,400, which the £120 monthly saving would take around three and a half years to recover, before fees. Whether that makes sense depends on how long the new deal lasts and how much you value switching now versus waiting.
If your circumstances have changed
Sometimes people consider remortgaging early not for a better rate but because their circumstances have changed, such as needing to release equity or change who is on the mortgage. In these cases the early repayment charge still applies, so it must be weighed against the benefit. A product transfer or waiting until the deal ends may be cheaper if your need is not urgent, as our guide to remortgaging covers.
Watch the small print
Before remortgaging early, check your mortgage paperwork carefully for the exact early repayment charge, how it reduces over time, and any other fees. The charge can differ significantly between deals, and knowing the precise figure is essential to a sound decision. It is always worth confirming the details with your lender rather than relying on a rough idea, so your calculation is based on the real numbers.
Patience often pays
For many people, the cheapest course is simply to wait until the fixed deal ends and the early repayment charge falls away, lining up a new deal to start then. Unless rates have moved dramatically in your favour, the saving from switching early rarely beats the charge. Patience, combined with starting the remortgage process a few months before your deal ends, usually delivers the best outcome.
The sensible summary is to treat the early repayment charge as the deciding figure: get your exact charge, compare it honestly against the savings a new deal would bring, and only switch early if the numbers clearly favour it. In most cases, lining up a new deal to start as your fix ends is the cheaper, calmer route.
Keep your end date in view
Even if remortgaging early is not worth it now, it pays to keep your deal's end date in view so you can act in good time when the charge falls away. Note the date, set a reminder a few months before, and start arranging a new deal then. That way you avoid both the early repayment charge and the standard variable rate, switching at the one moment when it costs you nothing extra.
In short
You can remortgage before your fixed deal ends, but you will usually pay an early repayment charge, often 1% to 5% of your balance. It can be worth it if rates have fallen enough that the savings outweigh the charge, which needs careful calculation. Alternatively, secure a new deal in advance to start when your current one ends, or port your deal if moving. Advice helps you weigh it up.
Where to get help and next steps
Read our guides to early repayment charges, when to remortgage, and what happens when your fixed rate ends. This is general information, not mortgage or financial advice.