Financial Penalties

Your present mortgage could have some severe financial penalties if you decided to change to something more competitive and under these circumstances you may well be better off financially if you stay put.

Already Got The Best Deal

It could be that after shopping around for a better deal and doing some calculations involving fees, penalties etc. , you find that you wouldn’t be any better off if you switched to another lender.  Changing in these circumstances would obviously be pointless, however you should regularly look at what other deals are available as you may find at some point that you no longer have the best mortgage for you.

Near The End Of Your Mortgage

If you have been paying off a mortgage for some time, it could be that the amount you would need to borrow from the new lender is too small for them to consider you.  You may also find that the cost of switching when near the end of a mortgage makes the change uneconomical.

Changed Personal Circumstances

Some people may find that due to changes in their personal circumstances, they would no longer be able to get a mortgage elsewhere or have a reduced choice.  For example, if they have become self-employed or one partner is no longer in employment.

Interest Rate Changes

As mortgage fees and interest rates are constantly changing, you could find that at the present time it doesn’t make financial sense for you to switch lender.  It’s always worth keeping an eye on the situation though, as fees and rates could change to the point where you would be better off switching.

Disclaimer-

This guide does not constitute financial advice.  Anyone seeking financial advice should seek appropriate professional advice.