Is now a good time to remortgage?
On 22nd June, the Bank of England increased the base rate for the 13th time in row. It now sits at a 15 year high of 5%. As a result, many people are asking whether now is a good time to remortgage, or whether they should hold off in case the mortgage market improves. Adam Nanson, Managing Director at Your Mortgage Expert in Salisbury comments:
What is happening with mortgage rates?
“Predicting what is happening with the mortgage market over the last six months has been incredibly difficult. We think we know what is happening and then things change with a new prime minister or inflation not behaving as expected.
“The current mortgage market situation is that the Bank of England increased the base rate for the 13th time in a row on 22nd June. This resulted in mortgage rates now being at their highest level since December 2022. With the average rate for a two-year fixed-rate mortgage now at 6.01% according to the financial information service Moneyfacts*.
“Most financial experts are now predicting that mortgage rates are going to continue to rise and for us to be in a mortgage crunch for the next 12 months**.”
So, is now a good time to remortgage?
“If your mortgage deal is coming to an end, we would advise you speak to your mortgage broker about your options. We don’t know for certain in which direction interest rates will go. But the worst thing you can do is do nothing. As the most expensive option generally will be for you to go onto your lender’s standard variable rate. This will happen if you don’t switch to a new deal.
“Most of my clients tell me that, one of the things they like the most about fixed term deals is the security of knowing how much they will pay each month. And, fixed term rates tend to be lower than your lender’s standard variable rate. So, even though rates are high currently, with a fixed term deal, you know how much you will pay regardless of whether rates continue to rise as is predicted.
“However, there are other options such as more flexible arrangements which you might want to consider if you don’t want to commit to a fixed term arrangement right now.
“If you are within six months of your current deal coming to an end, we would advise you to contact your mortgage adviser to discuss your options. We can start looking at options now and help you lock in a rate now in case they do go up over the next six months.”
The information contained within this article was correct at the time of publication. It is intended for information only and should not be used as a basis for purchasing any products. We cannot be held responsible for something that was correct at the time but subsequently changes or goes out of date. For further information, contact Your Mortgage Expert on 01722 322683.
We’ve been helping people with their mortgage and protection needs for over 15 years. Find out what our happy customers have to say about us.More info
At Your Mortgage Expert, we believe that something good is worth sharing. So, if you’re happy with our service, why not tell a friend?More info
If you would like to speak to us about your mortgage and protection needs, please get in touchContact us
Our handy mortgage calculator
Our mortgage calculator can help you get a better idea of how much you can afford to borrow, and how much your mortgage will cost you in monthly repayments.CALCULATE NOW
Legal and privacy information
Your Mortgage Expert Ltd is an appointed representative of Mortgage Advice Bureau which are authorised and regulated by the Financial Conduct Authority
5 Reasons to use a mortgage broker
We often get asked why use an Impartial Mortgage Broker like Your Mortgage Expert. Here’s our five top reasons.
5 Tips for remortgaging your property
Adam Nanson from Your Mortgage Expert shares his top five tips for remortgaging. These will help ensure you save time, money and stress.
5 Reasons to remortgage your home
Thinking about remortgaging but not sure whether it’s for you? Read our handy guide to find out if a remortgage is suitable for you.
“This was knight in shining armour stuff. Our conscientious mortgage broker was a delight to deal with from the off and the key to our dream home.”
Max and Martha, First Time Buyer customers from Cardiff
“Being in the Armed Forces I am away a lot, meaning it can be hard to attend meetings, answer emails and especially hard to fill in forms. Adam and his team were extremely helpful and understanding of our situation and provided help wherever they could. After our initial meeting where we provided our required details, we actually did very little of the hard work, apart from signing a couple of papers.”
Callum and Verena, First Time Buyer Armed Forces Mortgage Customer from Salisbury
“I expect my circumstances were fairly rare, but the help and guidance I received from you was invaluable. I feel that the personal touch you provide offers something that appeals to the soldier in me. During my service I always liked to have a point of contact, someone who was the “go to” specialist in their field. This provides a degree of assurance about a situation and it was refreshing to find that same degree of certainty transitioning to civilian life, particularly with something as important as a mortgage and buying our family home.”
Andrew and Helen, Armed Forces Mortgage Customers from Salisbury
“Even though we were used to having a mortgage on the rental property, paying a mortgage on your own home was still a bit of a shock after years of having married quarter rental deducted from your pay at source. But, at every step along the way, we felt reassured, understood and that we really mattered to Adam. Trust is an important concept for military families and we trusted Adam.”
Fiona and Graham, Armed Forces Mortgage Customers from Wilton
“As a contractor, it was difficult for me to obtain a mortgage through normal channels so it was great to find a mortgage adviser that specialised in contractor remortgages and understood the challenges. In addition, I had fairly tight timescales, so wanted someone who could make the process quick and hassle free.”
Andrea, Contractor Mortgage Customer from Warminster
“I am a contractor, therefore require specialist mortgage advice. Adam has now concluded two mortgages for us (new mortgage then a contractor remortgage), and is currently arranging a buy-to-let mortgage for us. He also arranged our life insurance for us. We keep returning to him for some great reasons – he is always available, and ready to help. He provides great advice, and always ensures that he meets our requirements exactly. He is prepared to explain things in such a way that even a lummox like me can understand, and his level of service has remained consistently good over the last three years.”
Matt, Contractor Mortgage Customer from Southampton
“Adam’s advice on the different types of critical illness and life insurance were really useful. He also worked with us to decide the best combination of policies that would work with our existing policies to cover our needs. When doing this he happily tweaked quotes for us until we came out with an arrangement that was both affordable and would provide us with the level of cover we thought appropriate.”
Hannah and Steve, Protection Insurance Customers from Stamford
“Adam provided us with factual advice and also with options of which we were unaware. The advice on gifted equity was something we hadn’t heard about and this assisted us hugely to ensure repayments worked within our affordability. He provided us with a very personal service that made the journey from initial call, to mortgage offer and completion hassle free. We have already recommended Adam to someone and will continue to recommend his services in the future.”
Saul and Laura, Home Mover Mortgage Customers from Salisbury
“Mike and I collected the keys to our flat this weekend and we couldn’t be happier. It’s been a long time coming but we got there! We just wanted to say a MASSIVE thank you for everything you have done for us so far. We’ve really appreciated all the help, advice and reassurance you’ve given us all the way through this process. It’s really nice to have a friendly voice on the other end of the phone.”
Mike and Bethan, First Time Buyer Mortgage Customers from London
“Without question Adam found me a deal the estate agent’s broker couldn’t. He was very easy to contact whenever I needed him and he took time to explain the ins and outs of the Help to Buy equity loan scheme mortgage that he found me. I would rate him five out of five and will be back to use him when the time comes to remortgage or move.”
Chris, Help to Buy Mortgage Customer from Southampton
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed