Can You Remortgage in Cambridge During a Fixed Term?

Taking out a remortgage in Cambridge can be a great way for a homeowner to potentially save money on their money payments, or access funds that are sitting within their home. This can be done usually by remortgaging to release equity.

The vast majority of homeowners will generally start their remortgage process around 3-6 months prior to their current deal finishing. Despite this, there are always homeowners out there that are unsure if they are able to remortgage in Cambridge during a fixed term, earlier than many normally would.

A fixed term mortgage allows you to maintain regular monthly payments for a specified period, usually lasting from two to five years, with an unchanging interest rate. In this article, we will investigate the feasibility and advisability of remortgaging in Cambridge while under a fixed term.

When should you look into a remortgage in Cambridge?

Homeowners in Cambridge will generally look to remortgage their property about 3-6 months before their current deal expires.

This time frame allows a mortgage broker in Cambridge to perform their job effectively and ensures a smooth transition as your new deal becomes ready just as the old one finishes.

This approach also helps you avoid falling onto your mortgage lender’s standard variable rate of interest (SVR), which is often much higher than the Bank of England base rate and can fluctuate solely at the discretion of the mortgage lender.

Remain cautious of these deals as they are usually more costly, and are likely not your optimal choice.

Your mortgage advisor in Cambridge will use the period before your current deal ends to search for better alternatives that suit your requirements and objectives, such as remortgaging in Cambridge for home improvements.

Can you remortgage in Cambridge during a fixed term?

It is possible to remortgage in Cambridge during your fixed term, but if you do so while the fixed term is still ongoing (and before the usual 3-6 months prior), it would be considered as remortgaging early.

Technically, you can do this, as there is nothing stopping you from applying for a new mortgage deal, however, it’s important to keep in mind that there are usually penalties associated with breaking a fixed term mortgage contract.

This means that if you choose to remortgage early, you will likely be subject to early repayment charges from your mortgage lender. These charges can be quite high, and may offset any potential savings you might make by switching to a new deal.

Therefore, before you decide to remortgage in Cambridge during your fixed term, it’s important to weigh up the potential benefits against the costs.

You should speak to a mortgage advisor in Cambridge to help you determine whether it makes sense to switch deals early or whether it would be better to wait until your fixed term comes to an end.

They will be able to give you tailored remortgage advice in Cambridge based on your individual circumstances and financial goals.

Should I remortgage in Cambridge early?

Determining whether it is beneficial to remortgage during your fixed term ultimately depends on your financial goals and situation.

It is always recommended to get mortgage advice of a qualified mortgage advisor in Cambridge before making any decisions. Remortgaging is typically only pursued if there is a compelling reason to do so.

There are several popular reasons for remortgaging in Cambridge, including securing a better deal if you are currently paying a higher interest rate than what is available on the market, as well as protecting against potential interest rate increases and inflation.

Whilst this is the case, it is essential to carefully consider the long-term financial implications of remortgaging during your fixed term, as early repayment charges can be expensive.

It is important to determine whether the potential benefits of remortgaging outweigh the costs, or if it is better to wait until your fixed term has expired.

Why don’t people usually remortgage in Cambridge early?

We would recommend that you try to avoid remortgaging early due to the possibility of any early repayment charges.

Depending on how early you choose to remortgage, these charges could end up being quite high. The cost of early repayment charges tends to increase the earlier you choose to take out your remortgage in Cambridge.

On the other hand, if you determine that remortgaging early is financially beneficial in the long run, despite the charges, then it could be a good option for you.

We highly recommend speaking with a mortgage advisor in Cambridge beforehand, to assess whether remortgaging early is the best decision for your circumstances.

Can I remortgage in Cambridge early with the same lender?

While remortgaging in Cambridge usually entails taking out a new mortgage with a different mortgage lender, it’s worth noting that you may have the option to transfer to a new product with your current mortgage lender. This is known as a Product Transfer and is becoming increasingly popular.

Your mortgage lender or mortgage advisor in Cambridge may inform you of when your current deal is set to expire, giving you enough time to consider your options. If you wish to proceed with a Product Transfer before your current deal ends, you may still have to pay early repayment charges.

Staying with your current mortgage lender could also result in lower fees as there are no additional legal costs that come with switching to a new mortgage provider.

Fees to Consider with an Early Remortgage

Like any mortgage, remortgaging in Cambridge will involve paying various fees. When remortgaging early, you may also be subject to an early repayment charge.

Early Repayment Charge

An early repayment charge is an expense that you will almost inevitably face if you plan to exit your mortgage deal early, especially during the fixed period. The earlier you decide to leave, the higher the cost of the charge is likely to be.

The logic behind this charge is that, when you entered into the mortgage agreement, you committed to repaying the borrowed funds over a specific period of time.

Although remortgaging in Cambridge may benefit you financially, it is technically a violation of the terms you agreed to, and may therefore result in a penalty fee.

Exit Fees

Exit fees are a common feature of most mortgages, and in some cases, they are mandatory to finalise your mortgage once you have fully paid it off. These fees can be encountered both at the end of your full mortgage term and when you decide to remortgage in Cambridge and switch to a new deal.

Valuation Fees

Valuation fees are typically associated with remortgaging in Cambridge since when you opt for a product transfer, your existing lender already knows the value of your property. On the other hand, a new mortgage lender will want to assess the value of your property before offering you a new deal.

Whether or not you will need to pay a valuation fee depends on your mortgage lender. Some mortgage lenders may include it as part of their service, while others may charge separately for it.

Your mortgage advisor in Cambridge can provide you with more information on this during your free mortgage appointment.

Arrangement Fees

Product fees, also known as arrangement fees, are typically associated with a specific mortgage product. These fees can be added to your mortgage balance and paid off over time with your monthly payments, but you may also have the option to pay them upfront.

How to Remortgage in Cambridge Before Your Fixed Rate Ends

Typically, most mortgage deals, including fixed rates, require a commitment of at least 6 months before you can consider a remortgage in Cambridge. It’s important to note that attempting to remortgage in Cambridge before this period is up will likely result in substantial charges.

If you’re considering an early remortgage in Cambridge, it’s important to first contact your mortgage lender to understand the charges that would be present. Additionally, speaking with a trusted mortgage advisor in Cambridge will help in determining whether it is a wise decision to make.

As a mortgage broker in Cambridge, we offer a free remortgage review with a member of our remortgage advice team to discuss your situation and provide guidance on whether it’s financially beneficial to proceed with an early remortgage in Cambridge or wait for a more appropriate time.

Can I Remortgage in Cambridge to Pay Off Debt?

Homeowners have several options when it comes to mortgages, especially as they near the end of their term. One popular choice is to remortgage in Cambridge, which means taking out a new mortgage to replace the old one, often with a better rate.

That being said, not everyone chooses to remortgage for a better deal. Some may want to release equity for home improvements, while others may explore options like product transfers with their current mortgage lender.

Another common option is a debt consolidation remortgage in Cambridge. This involves combining unsecured debts (such as credit cards and loans) into one manageable monthly mortgage payment, reducing overall expenses.

It’s important to note that consolidating unsecured debt and securing it against your home requires expert help. It’s recommended to seek professional mortgage advice in Cambridge before proceeding.

How can I pay my debts by remortgaging?

If a remortgage in Cambridge to consolidate debt is determined to be the best option for you by your mortgage advisor in Cambridge and you meet the necessary criteria, you will need to have the right amount of equity in your home.

Equity is the difference between the value of your property and your current mortgage balance.

The reason you need equity is that, like a remortgage in Cambridge to release equity, you will use a lump sum to pay off your unsecured loan debts. These costs will then be added to your mortgage balance, increasing the amount you owe over a longer term.

This means you will be paying interest over a longer period than before, resulting in a higher overall repayment amount.

Can you remortgage in Cambridge early?

Whether or not you can remortgage in Cambridge early depends on how far along you are in your term. In general, people do remortgage early, typically starting the process 6 months in advance so that their new deal begins as their old one ends.

Remortgaging earlier than this can be expensive. Remortgaging earlier than 6 months may result in an early repayment charge, which can be costly. For example, if you are only 2 years into a 5-year fixed-rate mortgage, it is likely that you will have to pay one of these charges.

In some situations, it may be viable to pay the charge. Do keep in mind that you would be spending a lot of money to lose out on your current mortgage deal (which may be cheaper overall) and the money spent on the early repayment charge could have been used to pay off your debts.

It is always recommended to speak with a mortgage advisor in Cambridge to determine if this is the best course of action for you before proceeding. There may be better options available, such as a further advance.

Are you able to take out a further advance?

A further advance is a type of additional borrowing where you borrow more money from your current mortgage lender, usually at a different interest rate than your primary mortgage.

Like a debt consolidation remortgage in Cambridge, this spreads your costs over your term but with lower interest rates than a personal loan.

While a further advance is often a good alternative to a remortgage in Cambridge for home improvements, it may not be the best option for debt consolidation.

Keep in mind that this extra debt is secured against your home. If you are unable to keep up with payments, you risk falling into arrears and facing repossession.

Risks aside, this option allows you to pay off your debts even if you are not yet able to remortgage, such as if you are still in your fixed or introductory period.

Speaking with a mortgage broker in Cambridge can help you accurately evaluate all available options.

The Pros & Cons to Remortgaging to Pay Off Debt

Like any mortgage option, there are both benefits and risks to consider. The biggest advantage of remortgaging to consolidate debts is that it lowers your overall monthly expenses into one manageable mortgage payment.

Your mortgage payments will increase because you are borrowing more, but your monthly payments to the credit providers you have consolidated will stop.

On the other hand, you are increasing your mortgage amount and will be paying back more over a longer term. That being said, this can free up more income for other expenses or to overpay on your mortgage if appropriate.

Keep in mind that consolidating your debt will result in paying more overall. Although the mortgage interest rate may be lower than a personal loan, you will be paying the lower rate for many more years, making it more expensive in the long run.

It also puts your home at significant risk since all of your unsecured loans will now be secured against it. If you fall into arrears after missing any payments, you could face the risk of repossession.

This is why remortgages in Cambridge to consolidate debt should be carefully considered beforehand. Is it worth risking losing a family home to consolidate debts?

Should I remortgage in Cambridge to pay debt?

The question is whether or not you should do it. This depends entirely on your situation. While it is certainly risky and should only be considered in extreme circumstances, it can still be beneficial and help improve your financial state.

Once again, this is something that should only be done after you have spoken to a qualified mortgage expert. Our trusted mortgage advisors in Cambridge are always happy to discuss your different mortgage options during your free mortgage appointment.

If there is an alternative, we will always recommend that first.

You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.

Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally. & Cambridgemoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.

UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

We are entered on the Financial Services Register No. 627742 at

Equity Release Council Logo Solla Later Life Logo
Facebook Image Twitter Image Instagram Image YouTube Image LinkedIn Image SpotifyImage TikTok Image
Speak to an Advisor - It's Free Speak to an Advisor - It's Free
We use cookies to enhance your customer experience. More detailsGot It