Can You Change Your Mortgage Term When Remortgaging?

By Jodi Spreadbury, CeMAP, Award-winning Mortgage & Protection Adviser at The Mortgage Broker. 

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Reassessing Your Mortgage Term: A Smart Time to Act

Remortgaging isn’t just about chasing a better rate, it’s a chance to reshape how long you’ll be paying your mortgage.
Yes, you can usually change your mortgage term when you remortgage, subject to lender affordability checks. The real question is whether you should shorten it to clear your loan faster or keep the term the same and make flexible overpayments instead.

Both approaches can save interest and help you become mortgage-free sooner, but the right choice depends on your income, cash-flow needs, and discipline.

Why Term Changes Matter

When rates shift or personal circumstances change, new job, growing family, better income, your mortgage term can work for or against you.

• Shortening the term builds in discipline. You pay more each month but chip away at the balance faster.
• Keeping the term and overpaying lets you retain flexibility. You can dial payments up or down as life changes.

Getting advice before committing ensures your new term fits your budget comfortably and sustainably.

When clients remortgage, I model both options side-by-side,” says Jodi Spreadbury, Mortgage & Protection Adviser at The Mortgage Broker.

Case Study: Lower Rate, Same Payment – Years Off the Mortgage

• Client goal: avoid reverting to a higher Standard Variable Rate (SVR) and make progress toward early repayment.
• Before: £215,000 balance on a £265,000 home (≈81 % LTV), 33-year term, 5.90 % fixed rate, £1,233 per month.
• After: remortgage at 4.54 % fixed, 23-year term, £1,252 per month (almost identical payment).
• Result: about 10 years off the term and roughly £126,000 interest saved — without straining affordability.

Why it worked: the improved rate created headroom to shorten the term while keeping payments steady, turning a rate drop into a long-term gain.

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Overpay vs Reduce Term – How to Decide

1. Flexibility vs Discipline

• Overpaying: keep your current term but pay extra when affordable; most lenders re-amortise, finishing the loan earlier.
• Reducing the term: commit formally to higher fixed payments and guaranteed earlier completion.

2. Know Your Product Rules

• Overpayment limits: many fixed deals allow up to 10 % of the outstanding balance each year without penalty; trackers often allow more.
• Early Repayment Charges (ERCs): check these before large lump-sum payments or full redemptions.
• SVR risk: don’t let your deal lapse, lenders’ SVRs are typically higher and variable.

3. Good-Practice Checklist

• Maintain an emergency fund.
• Clear higher-interest debts before overpaying.
• Model three routes with your adviser:

1. 1. Lower payment + standing-order overpay.

   2. Shorter term within budget.

   3. Like-for-like rate switch.

Compare Market Rates

When Reducing the Term Makes Sense

• You want certainty and built-in discipline.
• Your new rate is lower than your old one, allowing you to “trade” savings for  years off.
• Your income comfortably supports the higher payment.

When Overpaying Is Better

• You need flexibility due to variable income or upcoming expenses.
• Your lender allows generous or unlimited overpayments.
• You’re mid-fix and want to stay within your penalty-free allowance.

Why Reviewing Now Matters

With lenders cutting rates and competition returning, remortgage opportunities are improving. Even small rate drops can open the door to a shorter term or meaningful overpayment savings.

Whether you’re approaching the end of a fixed deal or simply curious about what’s possible, now’s the time to check. A broker can model scenarios, compare lender rules, and handle the paperwork from start to finish.

I am happy to support anyone with any advice. Just book a free appointment with me directly right here: BOOK FREE APPOINTMENT. 

FAQs: Changing Your Mortgage Term When You Remortgage

Can I shorten my term when I remortgage?
Yes, lenders reassess affordability. If the higher payment fits your budget and stress tests, you can commit to a shorter term.

Can I extend my term instead?
Often, yes, subject to age and affordability rules. Extending reduces payments but increases total interest, so weigh it carefully.

Is it better to overpay or reduce the term?
Financially similar if your overpayments match the higher short-term payment. The key difference is flexibility vs discipline.

Will shortening my term affect affordability checks?
Yes, lenders test your ability to handle the higher payment under stressed rates. Your broker can model safe limits.

What happens if I do nothing at deal end?
You’ll likely move to your lender’s SVR, which is variable and usually higher. Start reviewing options 3–6 months before expiry.

Can a mortgage broker help with stamp duty questions?
Absolutely. Brokers can explain how current thresholds apply to your purchase type, run affordability checks, and identify suitable mortgage options that balance overall cost not just the rate.

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Note: SDLT calculations depend on factors such as buyer type, property use, and transaction date. Always seek tailored advice before completing a purchase.