A remortgage can be a hugely beneficial financial move for many homeowners, especially to avoid getting put onto your lender's Standard Variable Rate (SVR), but it’s not always the right solution for everyone.
Remortgaging can be a great way to bring down one of your biggest household bills, however if you’re already on a great mortgage deal or you own less than 25% of the home, you’re less likely to find a better deal on the market. Plus, it may be the case that you’re denied a remortgage by some lenders...
When not to remortgage
There are a variety of reasons why you perhaps shouldn’t remortgage, such as when you have a small amount left to pay on your mortgage. If this is the case, going through the process and paying any application fees probably isn’t worth it for you.
Not every lender may want to offer you a deal if you only have a small debt, as it’s less lucrative for them. Also, your early repayment fee might be too big, in which case it won’t be worth remortgaging yet. It’s important to do the sums before you make any decisions, just to make sure you’re actually going to save money.
If it turns out that you’re not going to save yourself money, then it’s advisable to wait it out until your current deal ends, so that getting a remortgage will cost you less.
When you’re refused a remortgage
As well having little left to pay on your mortgage, there are other reasons why you might be denied a remortgage by some lenders. One big reason is if your circumstances have changed, such as having new expenses. This may make it difficult to get remortgage due to new tighter mortgage rules, which take your costs into account when you apply.
Bad credit and issues with debt since your last remortgage will also be considered. If you have negative equity or if your home’s value has fallen, this may also effect your chances of remortgaging onto a better rate.
Even if you don’t fall into any of these categories, it’s really important to consider the pros and cons, as well as the rates available, in order to work out exactly what’s best for you.
TaylorMade can help
By speaking to mortgage experts before remortgaging your home, you can compare a wide selection of products with little effort. At Taylormade, our mortgage advisors can guide you through the whole process, searching the mortgage market to find the best deal for your individual circumstances
We can help to get your remortgage approved by assessing your finances and comparing every single product, to find a deal you could be accepted for. With us, you’ll eliminate any stress and hassle you could encounter going through the remortgage process. We’ll liaise with lenders, valuers and solicitors on your behalf, saving you time and money.
Get in touch with us today on 0345 305 2540, or info@taylormade-finance.co.uk
