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Why Shouldn’t I Remortgage?

We’re not saying Remortgaging is a bad thing, but you should consider these tips on why you shouldn’t get a Remortgage. For example, once your loan falls below a certain amount, such as £50,000 it may not be worth switching a lender simply because you are less likely to make a saving if the fees are high.

However, some lenders won’t even take on mortgages below £25,000. Do have a look but you’ll probably want to look at rates with a small fee, or no fee at all. So, the smaller the mortgage, the worse the effect of any fees you need to pay.

Early repayment charge is large

Mortgage Advisor from Doncaster, Stephen Kerrigan says that a large early repayment charge could mean that it’d be utter foolishness to move before the end of the incentive period.

It’s always worth asking your current lender to let you switch to another of its deals, such as a product transfer by paying a reduced early repayment charge. You’re unlikely to get to move to its top-of-the range deal but as long as it’s better than the one you’re currently on, and doesn’t lock you in for much longer, you will have nothing to lose.

Circumstances have change.

It’s possible that your financial position has altered since you took out your current mortgage, such as being furloughed due to the on-going coronavirus pandemic, stopped working, or you’ve become self-employed. Unfortunately, stricter mortgage rules were introduced in April 2014 meaning that lenders must see evidence of your income.  

You’ve had credit problems since taking out your last mortgage.

Remember the credit crunch? Yeah that – well ever since that crash, lenders have become much pickier about who they lend to. The Regulator now also requires them to carefully check the mortgage is affordable, not just at current rates, but at higher rates too.

Now you know the pros and cons of remortgaging, read our other remortgaging articles and mortgage tips here.

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