6 Reasons To Not Remortgage

6 Reasons To Not Remortgage

Note: Your home may be repossessed if you do not keep up repayments on your mortgage

1. Your mortgage debt is really small.

If your mortgage debt is very small, e.g. under £55,000, you may find it’s not worth switching lender, because of the fees you’re likely to pay. Many lenders won’t take on lenders below a certain threshold, so it’s very important to take expert advice. We are here to help and advise you so you can get the best option. Often in these circumstances, we would be looking at rates with a small fee or no fee at all. Remember the smaller the mortgage, the worse the effect of any fees you need to pay.

2. Your early repayment charge is large.

If you are faced with a large early repayment charge, we can often help you port your mortgage, but this would need to be discussed and everybody’s individual circumstances are different.

3. Your circumstances have changed.

If your circumstances have dramatically changed, then just be aware that new lenders may not be prepared to offer you a loan because you no longer fit their criteria. Therefore staying with the current lender is often advisable. Remember that strict mortgage rules mean all lenders must see evidence of your income, so staying with the same lender but doing a product transfer is often a sensible solution. As there’s less paperwork involved, typically no fees and lenders are legally obliged to treat existing customers fairly.

4. The value of your home has dropped.

This is the situation where you find yourself in negative equity. At the time of writing this (February 2022) it is quite the opposite with house prices still rising. In circumstances where the value of your home has dropped the only thing you can do is sit tight, make over payments whenever you can afford it as long as you won’t be charged fees as well, and wait for prices in your area to go up again.

5. You have very little equity.

If you need to borrow more than 90% of the value of your property – then you’ll often find it difficult to find a better rate. This is where it’s important to seek the advice of an experienced mortgage broker such as the Confidential Mortgage Broker. Quite frankly Tricia has seen it all in her 43 years of experience and will be able to steer you in the right direction.

6. Your current rate is already good.

Even if you think you’re on the best option, having Tricia’s advice and guidance is still invaluable as you don’t know what you don’t know. Don’t hesitate to call the office today on 07721 498 412.