Typically speaking if you are a homeowner and you do not wish to sell your home (and you are also on a fixed period), you will most likely look to remortgage in Bristol around 3 months before your initial fixed period is set to conclude.
Whilst this is technically before it does actually end, it is not considered remortgaging early, as your remortgage process will usually take that length of time to complete. It’s not like you are getting everything finalised that same day!
Though this is commonplace for many, there are some that may want to remortgage in Bristol a little earlier than this, perhaps 6 months or so before that deal is due to come to its end, which is also acceptable.
So, can I remortgage early in Bristol? Well yes, you are able to do this. There is nothing to legally stop you from taking out a remortgage. That being said, you shouldn’t always necessarily remortgage, especially without remortgage advice in Bristol.
Types of Remortgage in Bristol
You will generally have a choice of 3 different mortgage types when the time comes to remortgage in Bristol. The most popular of these is a fixed rate mortgage, with the others being discount rate mortgages and tracker mortgages.
Tracker mortgages will follow along with the Bank of England base rate. This means if their base rate is low, interest rates are low. If it’s high, interest is high. They are not fixed because of the way they work, though you can sometimes get “collared” rates, meaning they don’t go below a specific figure.
Discount rate mortgages are a version of the variable rate mortgage. They will generally be offered to you by your mortgage lender, as a discount of the standard variable rate mortgage that they already offer.
Fixed-rate mortgages are no doubt the most popular of these options. They allow you to fix in to a specific interest rate that exists at the time, for however many years you want to fix in for (typically 2-5 years).
Whilst the interest rates could go down and leave you with more to pay than you would otherwise need to, you are more likely to benefit from a fixed-rate, as rates will most likely go up.
Why would I remortgage early in Bristol?
Homeowners may wish to take out a remortgage in Bristol for all kinds of reasons. This can be to remortgage onto a better rate, to fund some of your home improvements, to consolidate some debts and more.
This is something you are able to do before your mortgage deal is due to come to an end, so why would your remortgage early in Bristol?
For a Better Deal
Though you are able to remortgage in Bristol and move onto a better rate when your deal is set to finish, there may be times when you wish to do this at an earlier time.
For example, if you were on a set deal that meant you had to pay a higher rate of interest than you could be able to get, you might want to remortgage early.
Doing so will most likely mean early repayment charges, but your savings you make on this might actually outweigh those additional costs.
To Protect Against Interest Rate Rises
The way that the market usually is, this is something that you are more likely to encounter as a homeowner in Bristol.
It is fairly straightforward to just take out a remortgage in Bristol once your fixed period ends, fixing in again for whatever the current interest rate is, but at that point, perhaps 2-5 years in, it may have risen much higher than what you were last on.
In a market where interest rates could go up further, you may feel it best to remortgage in Bristol much earlier, maybe a year before, pay the early repayment charge and settle for an interest rate that, whilst higher than it was, could be much more in a years time. That may make the costs worth it.
Some may even wish to look at taking out a debt consolidation remortgage in Bristol, putting all of their unsecured debt into a much more manageable monthly mortgage payment.
This will no doubt mean that you pay much more money overall, but could allow you to have more disposable income for bills and other things that you need additional funds for.
You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.
Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.
Why would I want to avoid remortgaging early in Bristol?
Again, as touched upon before, there are reasons why you may not wish to remortgage early in Bristol. This is typically due to the early repayment charges you most likely have to pay for this, with the costs varying depending on how much of your fixed-term is left.
A general rule of thumb is that you can expect to pay much less if you are closer to the end of your mortgages’ fixed period. Of course when it comes to tracker mortgages, there isn’t a fixed-period as such, but there will likely be an introductory period which can present a fee.
These costs tend to be quite expensive, which is why the majority of people will look to avoid them. That being said, it may still be worthwhile if you are able to save money over time.
It would always be recommended that you speak with your mortgage lender prior to making any decisions, to make sure you are completely aware of any early repayment charges that could occur if you were to leave early.
Should I remortgage early in Bristol?
Really all it comes down to your choice. If you feel like you will benefit in the long run by doing this, then by all means make a start on your process. Make sure you are always aware of the costs involved and speak with a trusted mortgage professional to make sure it is right for you.
Date Last Edited: December 6, 2023
