Remortgaging a property can bring, typically, many advantages to homeowners from saving money by switching to a more competitive rate, to providing an opportunity to release funds from your home to carry out home improvements. But with the UK base rate having risen to 2.25%, the highest it’s been since 2009 - are homeowners heading for a stampede when it comes to securing new mortgage products to secure new rates?
Act now to see if you can save
When your fixed mortgage ends, you no longer benefit from a preferential rate, and your lender will automatically move you onto a Standard Variable Rate (SVR) mortgage. This rate is typically more costly and likely to increase in line with inflation. SVR mortgages are only suited to homeowners capable of absorbing higher payments quickly, as they could cause a financial burden to those on a tighter budget or who are averse to paying more than they need to.
Competition between remortgage lenders is helping to keep mortgage offers attractive, but we would still advise you to look at the whole of the market when it comes to finding the right product for your circumstances.
According to UK Finance, 1.3 million fixed mortgages are ending at some point this year – meaning many homeowners will be looking to remortgage. Competition between remortgage lenders is helping to keep remortgage rates attractive, but rather than paying more with rising interest rates, shopping around for a remortgage is encouraged by independent mortgage brokers.
The Bank of England has hinted that further increases to the cost of borrowing are on the way, so now might be a good time to switch to a more affordable option while mortgage rates are still relatively low.
Six months or less left on your current mortgage?
Beginning remortgage conversations in the final six months of your current mortgage term could help you secure a new rate sooner, and potentially save hundreds of pounds ahead of further anticipated rate rises.
It can take around a fortnight to receive a remortgage offer, which is a legally binding agreement to lend you the money. This offer is typically valid for 6 months from the offer date.
Don’t go it alone
An independent mortgage adviser can take the hassle out of your remortgage application process. Choose one with access to the whole of the market, such as Skyline Mortgage Consultants.
If your circumstances have changed since your last mortgage was taken out, they can find you a lender sympathetic to your circumstances.
In a hurry?
If you don’t have time to talk now, or it’s late, then you can use our speedy Mortgage Sourcing Tool to see what rates are most aligned with your personal circumstances.
Talk to Tony
Talking to an independent mortgage broker will give you an idea of what the current most suitable mortgage rates are for your individual circumstances. By booking a free online mortgage appointment at a time that suits you, you can discuss topics such as product transfers, potential exit fees and early redemption penalties and gain the knowledge you need to make the right remortgaging decision for you.
Your home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. A fee may be charged for mortgage advice. The amount will depend on your circumstances.
Skyline Mortgage Consultants Limited is an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority. Skyline Mortgage Consultants LTD registered in England and Wales Number 8157062. Company Registered Office: Heathmans House, 19 Heathmans Road, London SW6 4TJ