When is it not right to remortgage?

The reality is if you have a mortgage you may want to  remortgage at some point! But the question to ask yourself is, is now the right time? This is a question of time, money, and you guessed it – personal circumstances!

In this blog we will be looking at when it is generally not considered a good time to remortgage.

Contact us today and we can tell you in minutes if it’s the right time and if and by how much you could be saving every month.

There are a few reasons or situations where we would say hold fire on remortgaging, they are as follows:

  1. You are already on a good deal! Kind an obvious one but worth pointing out. If you are on a good deal stick with it. Just remember to review the situation again in the future as what is a good deal now won’t necessarily be a few months down the line.
  2. You are locked in with penalties. A typical example of this would be large early repayment charges. Look at when your deal ends and look to remortgage the day after to help you avoid these penalties.
  3. Your equity has shrunk. This could happen if the value of your house has dropped. This in turn increases the loan to value and may take you to a higher rate
  4. Your personal circumstances have changed e.g. you’ve stopped working or become self-employed, although we can still look at options with your current lender
  5. Your credit score isn’t as good as it could be. Take some time to improve it – see our blog on how to do this if you aren’t sure!
  6. You have a very small mortgage. This is because you are less likely to make savings and some lenders wont lend to you if you have less than £25,000 left to pay.

Remember that these are just pointers and depending on your other circumstances it could still be a good time to remortgage. Talking to us could help you decide what to do as your interests are always at the heart of everything we do.