When You Shouldn’t Remortgage Your House ?
When you shouldn't Remortgage ?
While remortgaging can be a smart financial move for many people, there are some circumstances in which it may not be the best option. Here are some situations where you may want to avoid remortgaging:
- Early repayment charges – If your current mortgage has early repayment charges, you may want to consider waiting until these charges expire before remortgaging. Paying these charges could offset any potential savings you could make by remortgaging.
- Your current mortgage deal is competitive – If your current mortgage deal has a low-interest rate, it may not be worth remortgaging to a new deal, especially if you would have to pay fees to do so.
- You have a small mortgage balance left – If you only have a small amount left to pay on your mortgage, it may not be worth the fees and charges associated with remortgaging.
- You have a poor credit score – If your credit score has declined since you took out your current mortgage, you may find it difficult to get approved for a new mortgage deal, or you may be offered less favorable terms.
- You plan to move soon – If you plan to move in the near future, it may not be worth remortgaging, as you will have to pay fees to exit your current mortgage deal.
In general, it’s always a good idea to consider all the costs associated with remortgaging, including any fees and charges, before making a decision. It may also be helpful to seek the advice of a financial advisor or mortgage broker to determine if remortgaging is the right choice for you.
