The downside of remortgaging usually relates to cost and timing. Arrangement fees, valuation costs and legal charges can reduce any potential savings from a lower interest rate. If you switch before your current deal ends, an early repayment charge may apply, which can significantly impact the overall benefit.
Affordability is reassessed under current lending criteria. If your financial circumstances have changed, this could restrict your options or reduce the amount you can borrow. In some cases, borrowers extend their mortgage term to make repayments more affordable, but this may increase total interest paid over the life of the loan.
Should i remortgage or switch lenders?
The most common mistake is focusing purely on the headline rate without comparing the full cost of the deal. Reviewing all fees and long-term impact helps avoid this.
We outline key considerations on our Remortgaging service page.
Your home may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.