Leaving a fixed-rate mortgage early is a big financial decision. At Saga, we understand that circumstances change, and you might need to explore your options. Whether you're considering refinancing, moving home or simply seeking a better deal, it's essential to be aware of the potential costs and implications.
Our guide provides information to help you make an informed choice, looking at what costs you may incur when leaving a fixed-rate mortgage early and assessing if those costs outweigh any potential savings from switching.
What are fixed-rate mortgages?
A fixed-rate mortgage is a loan where the interest rate stays the same for a set time, usually between two to five years. This means your monthly payments won't change during this period, so you know exactly how much you'll pay each month.
After this fixed period ends, the interest rate switches to a standard variable rate (SVR). If you don't want to stay on the SVR, you can choose a new rate.
Can you leave a fixed-rate mortgage early?
Most lenders will allow you to leave a fixed-rate mortgage early. However, you may have to pay an early repayment charge (ERC) and an exit fee to end your mortgage during the initial rates period – before the agreed timeframe is over (e.g. five years). Consider getting professional advice from a broker before making an informed decision.
Some lenders won’t charge penalties for leaving a fixed-rate mortgage early. However, these providers typically charge arrangement fees upfront.
Can you change to a cheaper fixed-rate mortgage?
You might want to leave your fixed-rate mortgage early to get a better deal on a similar product. Even if your current rate was good when you signed up, things might have changed. It could be worth paying the early repayment charge (ERC) to switch to a new fixed-rate mortgage with a lower rate. However, you should check to make sure it’s worth paying the penalties before making a change.
Can you remortgage on a fixed rate?
You can remortgage if you have a fixed-rate mortgage, but again, you might have to pay an ERC and other exit fees if you do so before the term’s end. Compare these fees to the potential savings from the new mortgage deal to ensure it is financially beneficial.
Timing is also crucial. If you can, start the remortgage process between three and six months before your current deal ends. This gives you time to explore options without rushing, and you may be able to avoid the ERCs if you time it right.
How to get out of a fixed-rate mortgage
If you're thinking about exiting a fixed-rate mortgage early, start by thoroughly reviewing the terms and conditions. Again, it’s worth considering talking to a broker who can offer expert advice. Understand the penalties involved and ensure that this decision aligns with your financial goals.
Once you understand the penalties, contact your mortgage provider and let them know you want to leave your fixed-rate mortgage early. You then have a few options:
Remortgage with a new lender
Switch to a different mortgage product (e.g. tracker mortgage or standard variable rate)
Transfer your current mortgage to a new property
Pay off your mortgage in full
Note: Transferring your fixed-rate mortgage to a new property (Porting) commonly allows you to avoid paying Early Repayment Charges (ERCs), as the mortgage is transferred rather than closed. However, if you amend the balance or change providers during this process, ERCs may still apply.
How to calculate your early repayment charge
The amount your ERC will cost you depends on the mortgage agreement you have, how far into your initial rates period you are and the provider’s terms and conditions. However, you can typically expect it to be between 1% and 5% of your mortgage’s value, and the longer you have left, the higher the ERC is likely to be.
Example: If you have a £250,000 mortgage with a 2% early repayment charge, you would pay £5,000.
Designed to save you money
We’ll do our best to find you a mortgage deal with a lower interest rate, meaning you could reduce your monthly payments. And thanks to our range of money-saving features, your potential savings don’t stop there.
No broker fees on product transfers - If you switch to a new deal with your current lender, you won't pay any broker fees. If you borrow more through a further advance, our standard remortgage fee applies.
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Whether you have questions about a specific kind of mortgage or just want to find out more, the expert team are on hand to help.
Your home may be repossessed if you fail to repay your mortgage. Saga Money may receive payment from Tembo if you get a mortgage offer via the Saga Mortgages service. This will not affect the amount you pay for the service.
Saga is a registered trading name of Saga Personal Finance Limited, which is registered in England and Wales (company number 3023493). Registered office 3 Pancras Square, London, N1C 4AG. Saga Personal Finance Limited is authorised and regulated by the Financial Conduct Authority under the registration number 178922.
Tembo Money Limited (12631312) is a company registered in England and Wales with its registered office at 18 Crucifix Lane, London, SE1 3JW. Tembo is authorised and regulated by the Financial Conduct Authority under the registration number 952652. Tembo Money was awarded Best Mortgage Broker at the British bank awards in 2022, 2023, 2024 and 2025.
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