The short answer: check it before completion. A remortgage can complete before a fixed deal ends, but that can trigger an early repayment charge depending on the terms of your current mortgage.
A completion date in a portal or email may be an indicative date, an administrative date or the date currently being worked towards. Do not assume it is harmless if it falls before the end date of your existing product.
The three things to compare
- Your current product end date. Find this in your mortgage offer, annual statement or lender app.
- Your redemption statement. This normally sets out the amount needed to repay the mortgage on a stated date and can show an early repayment charge.
- The new mortgage completion date. Check the date being requested or confirmed by the people handling the remortgage.
If these dates do not line up with what you instructed or expected, contact the people handling the case before the mortgage completes. The current lender, the new lender, conveyancer and adviser can each have a different part of the process, so make the concern clear and keep the dates in writing.
What an early repayment charge means
An early repayment charge is a charge a lender may apply if you repay or change your mortgage before the fixed or discounted period ends. It is not a charge that automatically applies merely because you are looking at options or applying for a future deal.
MoneyHelper notes that a remortgage can be done at any time, but charges, product fees, legal fees and valuation costs all need to be considered. The exact early repayment charge, if any, depends on your lender and your own deal.
Do not forget the new offer expiry date
If the plan is to complete after the existing fixed rate ends, also check that the new mortgage offer will still be valid. A lender or adviser can confirm the timing for your particular case.
