How far ahead can you lock in a new rate?

You can lock in a new mortgage rate up to six months before your current deal ends. That right comes from the Mortgage Charter, which lenders signed up to from 10 July 2023, and it applies to borrowers coming to the end of a fixed interest rate period who are worried about rising interest rates. Under the Charter, your lender can offer a new rate up to six months before your old one expires, and you can change your mind if rates go down¹.

In practice, most people start the process around three months before their deal ends, and some start earlier. The reason to move before the deadline is simple: if you do nothing, you are moved onto your lender's standard variable rate, and average SVRs sit above 7%⁴. Remortgaging means switching from one mortgage to another, either to a new deal with your existing lender or to a new mortgage with a different lender⁵.

The catch is timing against your current deal. Leaving a fixed or tracker period early usually triggers an early repayment charge, which can run to thousands of pounds⁶. So the skill is starting the paperwork early enough to be ready, without actually completing so early that you pay a penalty.

You can lock in a new rate up to six months before your deal ends

The six-month window is the single most useful rule for anyone whose fixed rate is ending. The Financial Ombudsman Service, which handles complaints about mortgages, describes the same right: your lender can offer a new rate up to six months before your old one expires, and you can change your mind if rates go down³.

That last point matters. Locking in early is not a one-way bet. If rates fall between the day you reserve a rate and the day your new deal starts, you are not stuck with the higher one.

Not every lender is signed up to the Charter, so the six-month window is not universal. Some lenders describe their own version of it. Newcastle Building Society, for example, says eligible customers can lock in a new mortgage rate up to six months before their current mortgage product ends, and that the new rate can start up to three months before your current rate ends, unless you choose to pay early repayment charges to start it sooner⁹. That distinction between locking in a rate and starting it is worth understanding: you can reserve the rate months ahead, but the new deal usually only begins when the old one finishes.

When to start: why many people begin three to four months ahead

Six months is the earliest you can lock in, but it is not necessarily when the work starts. Lenders and advisers generally point to a shorter lead time. NatWest recommends you begin considering a remortgage around three months before the end of an existing mortgage deal⁷. Molo Finance gives the same guidance, suggesting you start the process around three months before the end of your current deal¹⁰. The Nottingham says it is recommended to start the process three to six months before your current deal is due to end, to ensure a smooth transition¹¹.

Some sources stretch the window further. Mortgage Advice Bureau suggests it could be good to start the remortgaging process early, around six months before your current mortgage ends¹². The Marsden makes the same point about the outer limit: most lenders will allow you to start the remortgage process, including securing a new rate, around three to six months before your product's end date¹³.

The reason for starting well before the deadline is not the rate itself but the paperwork. A remortgage involves a valuation, affordability checks and legal work, and any of these can slow down. Starting three to four months out leaves room for a delay without pushing you onto the standard variable rate. Starting six months out gives even more room, but if you complete too early you may pay an early repayment charge on the old deal, which is why the lock-in and the start date are separate things.

Remortgaging before your deal ends: early repayment charges and exit fees

You can remortgage at any time in theory, but the cost of leaving early is the thing that catches people out¹⁴. If you remortgage during the initial fixed or tracker period of your mortgage, you will likely need to pay an early repayment charge¹⁵. Leeds Building Society puts it plainly: if you decide to remortgage before your deal is up, you may have to pay a early repayment charge¹⁶. Furness Building Society says you may have to pay an exit fee and early repayment charge to leave your current deal⁶.

That is why the charge is often described as running to thousands of pounds⁶. MoneySavingExpert notes that if your current deal is ongoing, you will likely pay an early repayment charge to ditch it, which can cost thousands¹⁷. NatWest warns that you may be subject to early repayment charges if you choose to remortgage before your current mortgage deal expires¹⁸.

There is a separate charge to watch for: the exit or redemption fee. Leeds Building Society explains that this fee is payable if you redeem your mortgage before the end of the agreed mortgage term, and it is also known as an early redemption fee¹⁹. One buy-to-let lender, Accord, charges £90 to redeem a mortgage before the end of its term, unless the original offer stated a lower amount, and the fee is not payable when the term naturally ends²⁰. So there can be two costs: the early repayment charge for breaking the deal, and the exit fee for closing the mortgage.

Not every mortgage carries an early repayment charge. Family Building Society's lending criteria state that early redemption of its Managed Mortgage Rate, in full or in part by capital repayment, is allowed at any time, without notice or early repayment charge, and redemptions can be arranged within five working days of receipt of a request²¹. Deals like this are the exception rather than the rule, so read your own offer document rather than assuming.

How long a remortgage takes: from application to completion

The remortgage process typically takes from 4 to 8 weeks after you apply, according to Barclays⁸. The Nottingham gives the same average, describing a journey that begins with checking your loan-to-value and ends with the new deal completing¹¹. Furness Building Society allows a longer outer limit, saying the process can take up to two months following application⁶.

The individual steps have their own timescales. A mortgage application typically takes two to four weeks to process, though this varies with the lender's workload and your circumstances²². A mortgage offer is typically expected within four weeks of applying²³. Citizens Advice puts the whole journey from application to the formal offer at about three weeks²⁴. Leeds Building Society warns that the process can take up to 12 weeks after all the paperwork and applications are complete²⁵.

The practical point is that the range is wide, from a few weeks to three months. That is the strongest argument for starting early: if you begin three months before your deal ends, even a slow case should complete in time. If you begin two weeks before, you may not.

What happens if you leave it too late: the standard variable rate

If your fixed period ends and you have not arranged a new deal, you are moved onto your lender's standard variable rate. Which? explains that at the end of your fixed period you will need to remortgage, and if you do not, you will be moved to your lender's standard variable rate, which is usually much more expensive⁴. The same warning appears across Which?'s mortgage guidance: at the end of the fixed period you must remortgage or be moved to the lender's SVR²⁶.

How much more expensive? Which? reports that average SVRs sit above 7%⁴. That is the figure to hold in mind when deciding whether to act. A borrower who drifts onto the SVR pays that rate until they arrange something else, and there is no automatic switch back to a fixed deal.

The SVR is also the fallback in less straightforward situations. StepChange notes that if your mortgage deal expires while you are on a debt management plan, your current lender will usually offer their standard variable rate²⁷. Newcastle Building Society suggests it is worth thinking about remortgaging if you are nearing the end of your current mortgage product, but to check first whether there are fees for exiting your deal early¹³.

Is it cheaper to stay with your current lender?

Staying put is a real option, and it is usually cheaper in fees than a full remortgage. Moving to a new deal with your existing lender is called a product transfer, and it avoids the legal work and valuation that a switch to a different lender normally involves. It also avoids any early repayment charge, because you are not redeeming the mortgage, just changing its terms.

The trade-off is choice. A product transfer limits you to the deals your current lender offers, while a remortgage opens up the whole market. Whether staying is cheaper overall depends on the rate and fees attached to each option, not on the label. The comparison to make is the total cost over the deal period, including any arrangement fee, valuation fee and legal costs, against the saving from a lower rate.

There is one situation where staying may be the only realistic option. StepChange's response to the Financial Conduct Authority on mortgages states that clients with mortgage arrears will remain ineligible to move to a more affordable deal, either with their current lender or another provider²⁸. If you are behind on payments, a product transfer with your existing lender may be more achievable than a remortgage to a new one, though the lender still has to agree.

What documents you will need

Lenders ask for a standard set of paperwork, and having it ready is one of the easiest ways to keep a remortgage on schedule. TSB lists what lenders usually ask for: proof of identity, your passport and National Insurance number, proof of address for the last three years, payslips for the last three months, bank statements for the last three months, details of any loans you currently have outstanding including student loans, and mortgage statements for the last year if you are moving lenders²⁹.

If your circumstances are more complicated, more evidence may be needed. In cases involving mortgage arrears that reach court, the guidance for Northern Ireland sets out a longer list, including all letters from the lender, notes of telephone calls or meetings, a completed budget form, proof of salary or benefits, a letter from the estate agent if selling, a letter from the new lender if a remortgage has been applied for, proof of a change of circumstances such as a job offer, and proof of money due to you such as backdated benefit or compensation³⁰.

StepChange publishes a mortgage checklist that is worth working through before you apply, covering the documents and details a lender will want³¹. Gathering everything in advance avoids the situation where a slow response to a document request pushes your completion past the end of your current deal.

When remortgaging is not worth it

Remortgaging costs money, and if the costs outweigh the saving it is not worth doing. The main costs are the arrangement fee on the new deal, a valuation fee, legal fees, and any early repayment charge on the old deal. If you are inside a fixed or tracker period, that last item alone can wipe out the benefit of a lower rate for years.

There are also circumstances where remortgaging is difficult or impossible. Borrowers with mortgage arrears may be treated as ineligible to move to a more affordable deal, either with their current lender or another provider²⁸. If you are on an interest-only mortgage, switching lender does not solve the underlying problem of repaying the capital: Which? reports that thousands of borrowers with pre-credit-crunch interest-only mortgages have no plan in place for repaying that capital, leaving them facing the prospect of selling up and downsizing unless they can remortgage³².

And if the reason you are remortgaging is to pay off other debts, the early redemption fee is a cost to factor in. StepChange warns that there is often an early redemption fee if you remortgage early³³. Rolling unsecured debt into a mortgage can lower the monthly payment but spread it over a much longer term, and it turns unsecured debt into debt secured against your home.