There are costs involved in remortgaging and as a result it's not something that most people do on a regular basis. Lenders often charge a penalty if borrowers want to opt out of their mortgage and there are other fees associated with remortgaging such as valuation fees and legal and administrative costs.
Another thing to bear in mind is that when remortgaging a lot of people end up extending the new mortgage loan term beyond the time that it would have taken to pay the original loan off. By doing this, even at a lower rate of interest, there's a danger in the long term of eroding any great potential savings.
The important thing is to compare the savings you might make by remortgaging with the costs involved. It can be well worth paying these fees for the benefit of new mortgage with lower interest rates.
Favourites (IE)
Print This
Email This
