Remortgaging? Take action sooner rather than later…

When you’re in the midst of financial uncertainty, it’s easy to make hasty economic decisions that aren’t always right for you or your budget. When it comes to remortgaging, it has never been more important to get sound expert financial advice that will take account of your financial position today – and in the years ahead.

There are many reasons why homeowners choose to remortgage – here are the top ten:

• You’re coming to the end of a fixed-rate mortgage deal
• Your rate is too high and you want a better deal
• You’re worried about interest rates rising again
• You want to switch from an interest-only mortgage to a repayment mortgage
• You’re in a lower loan-to-value (LTV) band now and qualify for a better rate
• You want to raise some money to consolidate your debts
• You want to use your equity to pay for home improvements
• You can afford to overpay your mortgage deal, but your lender will charge you
• You just want more flexible terms
• Your personal circumstances have changed

Whatever the reason you’re looking to remortgage, your first step should be to talk to an independent mortgage adviser who you can trust to help you make the right decision. That advice has never been more important than it is today.

The Bank of England has been steadily raising interest rates to counter the impact of inflation since December 2021. With rates currently at 4% (February 2023), the highest level since 2008, and inflation continuing to rise, the probability is that more rate rises will follow.

What do interest rate rises mean for a remortgage?

When interest rates rise, rises in mortgage rates are inevitable. If you’re on a standard variable rate (SVR) mortgage, you’ll experience higher monthly repayments that will continue until interest rates fall – or until you remortgage. New fixed-rate mortgage deals will mean higher repayments too.

So, what’s the answer if you have one of the top ten reasons for remortgaging?

The message from the experts at Mortgage Decisions is that, if you’re in a position to remortgage, it’s best to take action sooner rather than later. If you’re coming to the end of a fixed-rate or SVR mortgage, we always recommend you begin the process three to six months beforehand so you can avoid delays and make the most of the best rates available.

The good news is that there is an increasing number of attractive fixed-rate deals available and that, for some, the new generation of tracker mortgages offers exciting savings in the medium term. There are also some very appealing long-term fixed-rate mortgages that will lock in financial certainty for anything up to 50 years.

Sound interesting? Call the mortgage experts at Mortgage Decisions on 03454 500200 and we’ll give you a completely free mortgage review before talking through your remortgage options.