When Shouldn't You Remortgage?

Lenders now have to see evidence of your income against your outgoings and carry out thorough credit checks. So if your income has dropped since you last took out your mortgage (perhaps you only work part-time now or your partner has retired) the lender might be more cautious about lending you the money.

It might be the case that you’re already on a low rate and you don’t need to move to another one. Perhaps at this moment in time, there is no better rate than the one you’re on.

If you pull out of your current mortgage deal before the term is up, it could well come with a hefty early repayment charge which might make you think twice about switching. However, some lenders might be willing to waive the charge if you’re sticking with them and are just moving to a new deal.

If you owe your lender more than the property is worth, then you’re in what they call ‘negative equity’. It can be difficult to remortgage your house when you’re in negative equity - unless you have separate funds to repay the difference.

However, don’t just assume this is impossible. Everyone’s circumstances are different, just like every lender’s criteria is different, so it’s always worth speaking with a mortgage adviser to consider all your options.

If remortgaging isn't the right option for you right now, then you might want to consider something called a product transfer. This is where you stay with your current provider but you change your existing mortgage deal over to a new one that's more suitable for you. 

Talk to one of our Mortgage Advice Bureau professional mortgage advisers, based in our branches.