A website covering finances in the UK has a feature about remortgaging. A couple is in the third year of their mortgage and wants to know if they should remortgage to take advantage of lower interest rates. A finance expert responds. He states that the couple should first check the terms of their loan with respect to early repayment charges (ERC). The ERC could actually make remortgaging more expensive. Also, the couple should check to see if their credit rating has changed. He recommends consulting a third party mortgage broker.

Key Takeaways:

• Numerous borrowers who as of late bolted into a more extended term settled arrangement will think about whether they bounced the weapon.
• You took out a five-year settled rate contract three years back, when the normal rate at 75 for each penny advance to-esteem was 3.48 for every penny.
• Commonly, they extend from 2 for each penny to 5 for every penny of your extraordinary credit.

“On that basis alone, it would appear switching could reduce your mortgage bill significantly.”

Read more: https://www.thisismoney.co.uk/money/mortgageshome/article-4408196/Should-remortgage-early-pay-ERCs.html