There is no particular time to decide on re-mortgaging. It all depends on an individual’s personal circumstances. You need to know how much you can afford. It is always something to consider in times when you may need to save more money. It is essential that you consider a re-mortgage at the end of a fixed term mortgage or a preferential rate mortgage because switching at this stage will mean that you will be able to avoid being automatically placed onto the Standard Variable Rate by your lender as this rate is often higher.
Other times you may consider re-mortgaging:
- If there are other deals whereby the interest rates are lower
- You have built an equity of at least 10% in your home – as that will mean you will be able to obtain a better mortgage deal
- The benefits outweigh the costs.
It is always important to bear in mind that early repayment charges may be levelled at you by your current mortgage lender if you decide to leave. This is alongside other re-mortgage costs that you will have to pay. That is why any re-mortgaging needs to be assessed carefully to ensure that even after all of the costs are paid –the benefits of re-mortgaging far outweigh the costs.
If the same mortgage lender offers a better rate, it will be easier to re-mortgage with them as you will end up paying less than if you switched mortgage lender