If you have a mortgage that is relatively small, say under £50,000, it might not be worth remortgaging if the new mortgage fees outweigh the potential savings. Also, some lenders won’t take on small mortgages.
If your circumstances have changed, for example one of you has stopped working to look after children, then your income will be significantly lower and you may not be accepted by a new lender.
The same is true if you suddenly have bad credit – a mortgage provider will perform a credit check on you when you remortgage, so any black marks will be visible to them and they may choose not to lend.
What is a tracker mortgage – and should I get one?
Trackers tend to follow the Bank of England base rate at a margin above the rate (currently 0.75pc). So, for instance, you might pay Bank Rate plus 1.5 percentage points. You would now pay a rate of 3.25pc. But if Bank Rate rose to 1pc, you’d pay 3.5pc.
With variable rates borrowers suffer higher payments when rates go up.
What will it cost to remortgage?
Remortgaging isn’t cheap – there are a host of charges you could be liable to pay, including product fees (ranging from £500 to £2,000 upfront), valuation fees (up to £500), solicitor fees (up to £500), transfer fees (between £25 and £50) and potentially other charges, too.