There are often recommendations that people remortgage to save money. The mortgage can be one of the biggest chunks of money that we spend each month and so by trying to cut down the amount that we are spending on it, we can make some significant savings. It can seem like something that is very easy to do, but it is not something that everyone has the option of.
Although many do successfully remortgage, it is worth being aware that it is not something that everyone can do. Some people have trouble with remortgaging for various reasons. If you have a bad credit record, if you are tied in to a mortgage or if you are in negative equity you may have trouble remortgaging.
The new lender will want to check your credit record before they lend you any money. If you have a history of not paying back your debts on time or not paying bills when they are due, then you could find that they will not want to take you on. Some may be happy to lend money, but you may find that they will not be able to offer you such competitive interest rates and you may be better off staying where you are. It is worth asking around though as you should not give up before you start. You may also find that your current lender might have something that they can offer you which is better than the deal you are currently on. It is always worth asking as you have nothing to lose.
You may find that if you choose a fixed rate for a mortgage, then you will be tied in for a certain time period. It may be that you can get out of this by paying a fee. It is worth investigating how much this fee might be worth, as you may find that it is better for you to pay the fee and move as you might be able to save significantly more money than the value of the fee.
If you are in negative equity then you may not find anyone willing to lend to you. This is where the value of your house has dropped below the amount of money you borrowed to buy it. This tends to happen when only a small or no deposit is paid and house prices fall. This tends to only effect people who have not had their houses for long and so hopefully would have found a good mortgage deal to start with and so hopefully there will not be many people in this situation looking to remortgage.