Fixing your mortgage while interest rates are low makes sound financial sense. Is your current mortgage term coming to an end? Are you paying a higher rate on your mortgage? Are there better mortgage deals out there?
At Homeline Mortgages we are the experts here to give you information and advice about re-mortgaging and finding a good mortgage deal that suits your personal circumstances.
Homeline Senior Mortgage Consultant Jordan Tuttle has some helpful tips:
Is now a good time to re-mortgage?
There is no doubt that “remortgage” is currently the word on everybody’s lips. Recent CACI data revealed that the UK mortgage market saw over £14bn worth of maturities in September 2016 – so the time to remortgage could be now. A rise in the Bank of England base interest rate (BBR), something not yet seen in years, would normally be the trigger for a remortgage rush, as borrowers grab a fixed rate before SVRs climb. Instead, it has conversely been the drop in BBR which has triggered a surge in remortgage opportunities, as lenders renew competition and offer even lower rates on fixed rate deals.
Is it worth switching my mortgage?
Switching to a new deal might not just save you money, but also give you the opportunity to fix your interest rate to a low figure for the next several years. There has been a huge rise in the number of consumers making the most of the better deals currently available on the market.
My payments have recently dropped on my lenders standard variable rate, so why move?
Standard Variable Rates, or “follow-on rates” as they are sometimes known, are currently historically low, however fixed rates deals continue to drop also. It’s certainly worth exploring as to whether an even lower fixed rate deal is on offer for long term peace of mind.
How long can I fix my mortgage rate for?
The pricing of fixed rate products is currently at an all-time low. This means that longer term fixed rates, instead of the industry norm of 2 year fixed rates, may potentially offer good value dependent on your financial circumstances. Not only could you potentially reduce your mortgage payments, a fixed rate delivers peace of mind in an uncertain climate.
Why should I consider re-mortgaging?
The biggest reason is to save yourself some serious money, but that’s not the only reason people re-mortgage. It can give you the chance to raise money for some home improvements or you may wish to consolidate your debts. Fixing to a new low rate can help you manage your household budget, knowing exactly what your repayments will be.