Is remortgaging always right?
No. Remortgaging can be a great way to bring down the cost of one of the biggest household bills.
However, it’s not the best move for everyone.
WHEN SHOULD YOU NOT REMORTGAGE?
For example, if you only have a small amount left to pay then it’s probably not worth paying any application fees.
You might even find that not every lender wants your business if it’s just a small debt; that’s less lucrative for them.
If your early repayment fee is too big then it may well not make any sense to remortgage yet. Do the sums and work out if you will actually save money.
If you won’t then you may need to sit tight until your current deal ends and remortgaging will cost you less.
WHEN MIGHT YOU BE DENIED A NEW MORTGAGE?
Another issue is if your circumstances have changed.
New tighter mortgage rules mean that your costs are considered when you apply. So if you have new expenses, for example a new child to pay childcare for, you may find it hard to remortgage.
That’s the same if you’ve had issues with debt since you last remortgaged — it will all be considered.
Finally, if you’re in negative equity or if your home’s value has fallen then you may not be able to remortgage onto a better rate.
Whatever your circumstances if you’re considering remortgaging you need to do the sums, look at the rates available and work out exactly what is best for you.