Remortgaging early can seem like an appealing option, especially if you’ve spotted a better deal or your circumstances have changed.
Whether you’re thinking about reducing your monthly payments or freeing up some funds, the idea of switching before your current deal ends is something many homeowners consider.
So what happens if you want to remortgage before your deal ends, and what should you be aware of along the way?
How Remortgaging Early Works
Remortgaging early means switching your current mortgage deal before the end of your existing term. For many homeowners in Cambridge, this might be triggered by a drop in interest rates, a change in personal finances, or the need to borrow more. While it’s entirely possible, there are a few important things to consider before making the move.
Most mortgages come with an introductory deal that lasts for a set number of years – usually two, three or five. If you remortgage during this time, your lender might charge an early repayment fee. This fee is designed to cover the interest they expected to earn over the full deal period. That said, depending on how much you could save or gain by switching, the benefits may still outweigh the cost.
In some cases, remortgaging early could also involve additional valuation or legal checks. This is especially true if you’re changing lenders or borrowing more money.
When is the right time to remortgage early?
Timing plays a big part in whether an early remortgage in Cambridge will work in your favour. If your current deal is due to end in the next six months, it’s worth checking what’s available now. Many lenders will allow you to secure a new mortgage deal in advance, ready to switch once your existing term finishes.
You might also look into early remortgaging if rates have dropped since you signed your current deal. If the savings are significant enough, it could make sense to switch early – even with an early repayment charge to factor in. Every case is different, so it really depends on your remaining term, the costs involved, and the new deal you’re moving to.
It’s also worth considering how your circumstances may have changed. If your income has increased, your credit score has improved, or you’re thinking about borrowing more, now could be a good time to see if better options are available.
What happens if you remortgage early in Cambridge?
If you go ahead with an early remortgage, the process will look similar to a standard remortgage, but with a few key differences. First, your current lender will let you know if there are any fees for ending your deal early. This usually includes an early repayment charge and possibly a small admin fee.
From there, it’s about finding a deal that makes the switch worthwhile. Our mortgage advisors in Cambridge can compare what’s available, looking at your circumstances and future plans. If the numbers add up, you can move forward with a new application.
The lender will carry out affordability checks and may arrange a valuation on your home, especially if you’re borrowing more or moving to a different lender. Once everything is agreed, your solicitor will help with the legal side of things to make the changeover smooth.
If you’re staying with your current lender, the process might be quicker, with fewer steps involved. If you’re switching, it may take a little longer, but with expert help, it’s a straightforward journey.
Should you remortgage early in Cambridge?
Deciding whether to remortgage in Cambridge early depends on your personal situation. For some homeowners in Cambridge, the benefits of switching early, like a lower interest rate or more flexible deal, far outweigh the costs. For others, it might make more sense to wait until their current deal ends.
It all comes down to timing, figures, and what you want to achieve. Looking at the full picture, including any early repayment charges and the new deal on offer, can help you decide what’s right for you.
At Cambridgemoneyman, our mortgage advisors are here to go through everything with you. We’ll look at your current mortgage, check what’s available, and help you work out whether now is the right time to make the move.
Date Last Edited: May 29, 2025
