Remortgage: who shouldn't?

Many borrowers stand a good chance of saving money through remortgaging. But there remain some cases where applying for a remortgage is not a realistic option.

Where you have high Early Repayment Charges

If you have recently taken out a fixed rate mortgage or a discount mortgage you may find that early repayment charges make it very expensive for you to take your loan elsewhere in its first few years. These early repayment charges can stay in force long after the original fixed-rate or discount has run out. If you use our remortgage wizard you can work out whether the terms of your current loan don't sit well with a remortgage.

If you have a very small loan

Many lenders accept remortgage applications only if the loan required is above a minimum level of about £25,000. Fees may also be a problem with very small remortgage loans, as these may outweigh the small saving on offer.

If your employment status has changed recently

Lenders need to feel sure you will be able to repay the loan you take on, so they need to know your likely future income. If you have recently changed your work status from employee to self-employed, but have not yet had time to build up a reasonable track record for your business, you may find it difficult to get a good remortgage deal. Again if you use our remortgage wizard you can work out whether the terms of your current loan don't sit well with a remortgage.

Terms & conditions

Your initial mortgage consultation is obligation free. There will be a minimum fee for our mortgage service of £450, of which £150 is payable when you apply, and we will retain the commission from the mortgage lender. Alternatively, you can choose the fee only option which is typically 0.65% of the amount borrowed. The precise amount will depend on your circumstances and mortgage loan amount, and will be discussed and agreed before you make a mortgage application.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT

Legals

John Charcol is a trading style of Towergate Financial (West) Ltd, which is authorised and regulated by the Financial Services Authority; our registration number is 147692. John Charcol Associates LLP is an appointed representative of Towergate Financial (West) Ltd, which is authorised and regulated by the Financial Services Authority.  Registered office: Towergate House, Eclipse Park, Sittingbourne Road, Maidstone, Kent ME14 3EN. Registered in England No: 02292688.  This mortgage site is only directed at persons within the UK.   The FSA does not regulate some investment mortgage contracts.  Calls may be recorded for training and monitoring. Max call charge from a BT landline is 3.9p per minute. Calls from other networks may vary.