We explore how early you can remortgage your property, whether you have an existing mortgage or not. Many borrowers choose to remortgage to a new lender to raise capital or lower their monthly payments.
How soon can I remortgage?
The general rule is always within the last 3 months of your existing deal if you want to avoid potential charges, or 6 months after completion of the original mortgage (as a bare minimum). However, there are some lenders who will allow a remortgage outside of this scope but it will depend on your individual circumstances.
Existing Mortgage Holders
You will be able to remortgage to another lender after 6 months with your current lender. Lender options may be restricted if you want to remortgage sooner.
You will need to consider what fees and Early Repayment Charges apply with your existing lender to move. Lenders will often impose fees or charges if you remortgage within your initial deal period.
For example, if you took out a 2 year fixed rate, it is quite common that an Early Repayment Charge will apply if you remortgage within the 2 year fixed period. These charges are often a percentage of your outstanding balance or original loan amount. Check your original mortgage offer or call your lender and ask for a redemption statement.
If you have inherited a property, you will have a wider choice of lenders than can assist with a remortgage from the day of completion. Lenders can consider capital raising remortgages for inheritance liabilities.
Bridging Loan Purchases (Auction)
If you have bought the property via auction or with the use of a bridging loan, traditional high street lenders will sometimes restrict the maximum loan to value that you can remortgage. They may also restrict capital raising above the bridging loan balance.
Mortgage Free Property
If you own a property that is mortgage free (also known as unencumbered), you are free to raise a mortgage on the property. Loan to value restrictions will apply but you can usually borrow up to 90% of the property value. This will still be classed as a ‘remortgage’.
Which Mortgage Lenders can consider an Early Remortgage?
- Virgin Money
These lenders can consider an Early Remortgage subject to further assessment.
Author: Ben, Glow Mortgage Advisor (CeMAP, BSc Hons)
Date Published: 18th March 2020
Last Updated: 30th August 2020