7 considerations for refinancing your mortgage

Refinancing can be a good way of negotiating a reduced mortgage interest rate or a cash contribution from a new bank. If you are thinking about refinancing, we set out some important considerations below:

1. How long have you had your existing mortgage? If you received a cash contribution when you first obtained a mortgage, the bank may require you to pay back some, or all, of those funds if you refinance within a certain period, generally 3 years. Make sure you check the timeframes before applying for a refinancing loan.
2. You may want to wait until your fixed rate is due to expire. Refinancing in the middle of a fixed term mortgage could make you liable for break fees, and in the current climate the interest rates on offer may be higher than the ones you are breaking.