Borrowers on a tracker, discounted or variable rate mortgage may have already benefited from base rate cuts in March, but borrowers whose mortgage deal is nearing its end, or those currently on a standard variable rate (SVR), should review their situation as there are some competitive products on the market.
Remortgaging is where you take out a new mortgage on a property you already own, either to replace your existing mortgage, or to borrow more money against your property. Reasons to consider remortgaging include:
• Your current deal is about to end
• You are looking for a better rate
• You want to overpay, but cannot do this on your current mortgage
• You want to borrow more
• Your home has increased in value and your loan-to-value ratio means you may get a better rate
Lenders have adapted
Many lenders initially reacted to the coronavirus crisis by restricting the products available (particularly to those borrowers with a high loan-to-value ratio) and remortgage applications faced operational constraints such as an inability to do physical valuations. However, optimism has started to return, with lenders reintroducing a wider range of products and adjusting their processes, for example using automated ‘drive-by’ valuations.
Advice is vital
In such a fast-changing environment, those who are considering remortgaging over the next few months should assess their options now. There are pros and cons to remortgaging and it won’t be right for everyone. At present, the market is more complex, so we believe getting good advice is vital. As well giving you advice on whether a remortgage is suitable, we will explain the costs, outline potential implications and guide you through the process.
We’re here to help
We are responsible for advising you on the most suitable mortgage for your circumstances. Whether you’re moving up the ladder, looking to downsize, purchasing another property or remortgaging, please get in touch; we have our finger on the pulse in this evolving environment and can assist you to navigate any challenges. We are qualified advisers with in-depth knowledge of the market and are able to look at a whole range of mortgage products.
Getting a mortgage is one of the biggest financial decisions you will make, so it’s important to get it right.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
It is important to take professional advice before making any decision relating to your personal finances. Information within this newsletter is based on our current understanding of taxation and can be subject to change in future. It does not provide individual tailored advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change. The information contained within this article is for information only purposes and does not constitute financial advice. The Financial Conduct Authority does not regulate commercial buy-to-let mortgages.