Post Office Remortgages

The Post Office provides a variety of remortgage deals and types, so you can choose the one that best suits your needs. You will need to consider the value of your property, as well as the amount you can afford to spend on remortgage repayments each month.

Post Office Review

The Post Office was founded back in the 16^th century and is something of a British institution. In the 21st century the Post Office has expanded its remit to provide a huge range of financial services, including mortgages.

Post office remortgage benefits could include:

• A variety of fixed rate remortgages with interest rates fixed for 2, 3 or 5 years depending on which remortgage deal you choose
• 2 year tracker remortgages
• Buy to let mortgage deals from 2 to 5 year fixed

In the dynamic UK mortgage market, knowing the best time when to remortgage can significantly impact your financial well being. Here are some key scenarios where remortgaging could be a prudent decision, as well as circumstances where caution should be exercised.

1. Unhappy with Your Current Deal – When you secure a mortgage, the initial attractive offer often gives way to the less favourable Standard Variable Rate (SVR) after the offer term e.g. 2 years. Remortgaging becomes a wise move when seeking better terms, especially if the exit fees are manageable, enabling you to switch to a more cost-effective option.
2. Equity Release Goals – Releasing equity from your property, whether for making home improvements or assisting family members onto the property ladder, is a common motivation for remortgaging. This approach allows homeowners to unlock funds accumulated over the years.
3. Seeking Different Terms – Current mortgage terms may impose restrictions that no longer align with your circumstances. Remortgaging provides an opportunity to secure a more flexible arrangement tailored to your financial situation.

When Remortgaging Might Not Be Advisable:

1. Already on an Exceptional Deal – If your existing mortgage offers competitive terms, the potential gains from remortgaging may be marginal. Assess whether the move truly justifies the associated costs.
2. Small Mortgage Balance – Mortgages with balances as low as £50,000 may not justify the costs associated with remortgaging, especially considering fees relative to potential savings. Additionally, balances under £30,000 may limit lender options.
3. Challenges with Credit History – Lenders scrutinize credit histories, and a less-than-stellar record may result in rejection. Prioritise addressing credit concerns before considering a remortgage.
4. Deteriorating Circumstances – If your financial position has worsened since obtaining the current mortgage, carefully evaluate whether remortgaging will yield the intended benefits.
5. High Exit Costs – Some mortgage agreements impose steep early repayment charges (ERCs). Even if affordable, the overall financial viability of exiting such an agreement should be thoroughly assessed. In such cases, moving to a new property may be a more strategic option.

In conclusion, remortgaging demands thoughtful consideration of both potential benefits and drawbacks. Always conduct thorough research and, if necessary, seek professional advice before committing to this significant financial decision.