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By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 24th June 2020*

Can you remortgage during a fixed term mortgage?

Once your mortgage has been approved and you’ve bought a property, you can still keep shopping around and make changes to your agreement if you want to.

Remortgaging offers a way to take out another loan, that you could use to pay off your existing mortgage. You can remortgage at any time, though different types of mortgages vary, as do lender agreements.

When it comes to fixed term contracts, though it’s possible to remortgage during a fixed term period, there are important considerations that you should make.

We’ll be covering them in this article:

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Can I remortgage during a fixed term?

Yes you can, but you need to understand the implications before you make a decision. It’s possible to remortgage with your existing mortgage provider, or switch to a new one. Whichever option you choose, it’s likely that you’ll have to pay fees for exiting your existing mortgage early. There’s a possibility that the total sum of these fees may be more than the savings you would make from remortgaging.

These include:

  • Early exit fees: If you’re ending a mortgage contract early there are often fees equal to a percentage of the loan or amount being paid off.
  • Legal fees: You may need to enlist the help of a solicitor to oversee the remortgaging process. Many lenders also offer free legals and/or cashback deals to cover these costs.
  • Valuation: The new mortgage provider will want to see evidence of the value of the house so you’ll need to pay for a valuation, many lenders offer free valuations on remortgages as an incentive.

With this in mind, do the sums before you remortgage to be sure it’s worthwhile, or better yet, give us a call on 0808 189 2301 or  make an enquiry and we’ll introduce you to an expert broker who can offer impartial advice.

Can I remortgage after a 2 year fixed term contract?

Fixed term contracts usually last between two years and 10 years. If your two-year contract is coming to an end, it can be beneficial to remortgage so that you get the best available rate at the time. If you don’t look around your current lender may automatically switch you to a standard variable rate (SVR) mortgage with higher interest rates.

On the other hand, shopping around for the best current deal could save you money. It’s worth looking into the options at least three months before your contract ends. You can do this by contacting a broker. They’ll be able to assess your situation and recommend the best deal for you.

If you need help finding one make an enquiry and we’ll put you in touch with one of the experts we work with.

How can I remortgage before my fixed term ends?

If you’re keen to remortgage it’s best to speak to a broker as they’ll be in a position to give you the most up-to-date deals that may be suitable for you. While you can remortgage at any time, most experts will only recommend doing so when the interest rates are lower than what you’re currently paying (unless you have a specific goal in mind, such as releasing equity).

Once you’ve decided to remortgage and chosen which lender you want to apply with, the process isn’t too dissimilar to taking out a mortgage. The lender will do checks against their own criteria to feel confident you can pay their loan back and you’ll need to appoint a solicitor and get a new property valuation done.

Can I remortgage a buy-to-let during a fixed term contract?

The interest you pay on buy-to-let mortgages is usually higher than for residential properties and remortgaging can be a way to find a better deal with less interest. 

Remortgaging is allowed, however, the costs can add up. It may be best to wait until the fixed term period is over first. This is something you can discuss with a broker.

Can I change my mortgage to buy-to- let-during a fixed term?

Yes, you can. The first thing you should do is speak to your lender and ask them if they will allow you to switch. If they agree they may offer you a new rate.

Dependent on how far into the mortgage you are, the new rates you’ll be offered will vary, as explained below. If, on the other hand, they decline, you can approach another lender.

Can I remortgage in the middle of a fixed term?

Yes. For buy-to-let mortgages there’s normally a minimum of six months before you can remortgage. Exit fees are usually applied on a sliding scale so the longer you leave it the less you’re likely to have to pay to get out of your current deal.

Which lenders offer a remortgage before end of fixed term?

While most lenders will offer remortgage deals, not all will offer them if it’s below a certain value. 

For example, if it’s for less than £50,000, it may not be worth their while, or yours after the fees you may have to pay. If there’s a particular lender that interests you it’s worth finding out what their criteria is and if this is something a mortgage broker can assist you with.

How can I find out more about remortgaging before end of a fixed term?

Deciding to remortgage your property is a major financial decision so before you go ahead with it, we advise that you speak to an expert about your financial situation and the implications of remortgaging, which will lead you to having more debts. Similarly, if you have any questions about how to remortgage before your fixed term is up, speaking to an expert can prove invaluable.

To get help finding one, give us a call on 0808 189 2301 or make an make an enquiry for a free, no obligation chat and we’ll put you in touch with one of the expert brokers we work with.

Updated: 24th June 2020
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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.