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Guide

When to remortgage from a fix

Timing your remortgage correctly can save you thousands of pounds. Leave it too late and you could spend months on an expensive standard variable rate. Move too early and you might face early repayment charges. This article explains the best approach to remortgaging from a fixed-rate deal.

In this guide

When should you start looking for a new deal?

The ideal time to start comparing remortgage options is three to six months before your fixed rate expires. Most mortgage offers are valid for three to six months, so securing a deal early means you can complete the switch as soon as your fix ends, with no gap on the SVR.

Some lenders now allow you to lock in a rate up to six months in advance, giving you even more time to plan. If rates are rising, securing a rate early protects you from further increases. If rates fall before completion, some lenders will let you switch to a lower rate that has become available in the meantime.

Your broker should set a diary reminder and contact you well before your fix ends. At Clearview Mortgage Solutions, we proactively reach out to clients ahead of their deal expiring so they never fall onto the SVR unnecessarily.

What happens if you fall onto the SVR?

If your fixed rate expires and you have not arranged a new deal, you will be moved onto the lender’s standard variable rate. The SVR is set by the lender and can change at any time. It is almost always significantly higher than the best fixed or tracker rates available.

Being on the SVR is not the end of the world, and it does give you complete flexibility to remortgage without early repayment charges. But every month you spend on the SVR costs you more than necessary, so it is worth arranging a new deal as quickly as possible.

Can you remortgage before your fix ends?

You can remortgage at any time, but if you are still within your fixed period you will typically face an early repayment charge. ERCs are usually a percentage of the outstanding balance, often starting at 3–5% in the first year and reducing each year until the fix ends.

In rare cases, it can still make financial sense to pay the ERC and switch early. This might be the case if rates have fallen dramatically and the savings over the remaining years of a new fix outweigh the one-off penalty. Your broker can calculate whether an early switch is worthwhile in your specific situation.

Some fixed-rate products have no ERC after a certain point, such as five years into a ten-year fix. Check your mortgage terms or ask your broker to review them so you know exactly when you can switch without penalty.

Product transfer vs remortgaging to a new lender

When your fix ends, you have two main options. A product transfer means staying with your current lender but switching to one of their new deals. This is usually simpler, faster, and may not require a new valuation or full affordability assessment.

Remortgaging to a new lender involves a full application process but gives you access to the entire market. The best rates are not always with your current lender, so comparing both options ensures you get the best deal. A broker can handle both simultaneously and recommend the better option.

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Related guides

More guides in our fixed-rate mortgage hub.

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