When trying to decide should I refinance my mortgage, consider what your reasons are for wanting to do so. If for example it is to release equity for home improvements, it might be an idea to evaluate different methods of approach, such as using recycled fittings or recovering furniture and furnishings which would reduce costs.
If is to cut costs and reduce your outgoings, there may well be other ways to achieve that without going through the process and costs of refinancing, for example saving money on fuel bills by insulating your home or growing some of your own food.
If you intend releasing some equity from your home to invest it elsewhere, then ensure that your proposed new investment vehicle will give you a greater return than it would had you left the funds where they were.
Are you prepared for the much more stringent rules which now apply to borrowing? You will have to provide far more information about your financial health than you would have had to before the credit crunch.
How long are will you be staying in the property. If you are planning to sell up and move on in a few years time, you may not give yourself the chance to recoup the benefits of any refinancing.
If you do decide to refinance a mortgage, take the time and care to read the documentation carefully, paying close attention to the small print. Remember – the devil is in the detail.