When a Remortgage Is Not Right

Although remortgaging is a good strategy for most borrowers, it may not suit everyone.

Here are some situations when remortgaging would be a bad decision:

You have three years or less to go before you have paid off your loan. It may not make good economic sense to change your mortgage as the fees associated with it far outweigh the savings realized by the change.

Secondly, regardless of how long you have before the loan is paid off, the amount owed is minimal. Again, the savings equal less than the costs associated with switching.

You are already in the middle of a deal which has big penalties, or where the deal is finished but has lingering penalties. Again, the benefits are outweighed by the cost of switching.

Lastly, your finances are a mess, so you think everything will get straightened out by borrowing more. Remember, borrowing more is not the solution to every financial problem.