Is now the time to remortgage my home?
What is the current situation with interest rates?
“Over the last few weeks, my phone has constantly rung with clients wanting to speak to me about their mortgage rates. In fact, latest analysis from Loan Corp has found that Google searches for the term ‘remortgage’ skyrocketed by 215%*.
“The Bank of England last changed the Base Rate on 22nd September 2022 to 2.25%. Since then, there have been concerns around the pound and rising interest rates.
“The long and short of it is that, for most people looking to remortgage, it is probably going to cost more than the last time they fixed their deal. And, over the next few months, the Base Rate is predicted to rise again meaning the situation is unlikely to improve in the short term.
Can I still remortgage if I need to?
The main thing I have been saying to my clients is not to panic if your mortgage deal is up for renewal. There are still thousands of mortgage products available and we can still help.
“The worst thing you can do is to do nothing. You are more likely to worry if you ignore the situation and most people want the certainty of knowing how much your monthly commitments are going to be.
“By switching to a new deal, either with your existing lender or with a new lender, you will be able to fix your deal at today’s rate. While none of us have a crystal ball, most market predictions are that the interest rate is going to rise more over the next few months***.
“If you do nothing when your deal ends, you will fall onto your lender’s Standard Variable Rate which will probably be much more expensive than your current deal. And you won’t be protected against further rate rises.”
How can a Mortgage Broker help?
“Mortgage applications are taking longer than they used to and products and rates are constantly changing. Given the level of market volatility, we would advise clients to do the following:
- Start the process early – most lenders let you start the process of remortgaging with 4-6 months of your deal coming to an end. The sooner you start, the sooner you can fix in a new rate.
- Speak to a mortgage broker – mortgage advisers like us have up to date knowledge on the market situation. We can advise on the most appropriate deal from across the market, which might include staying with your existing lender.
- Get all your documents together early – mortgage rates and products are constantly changing right now. If your mortgage broker finds you a rate that you want to lock in, it will help if all your documents are ready to go. You can see on our website what documents your lender is likely to need.
- Respond to any additional questions quickly – we are finding that the lenders are asking far more questions currently and looking for a greater amount of evidence of affordability. If you respond quickly, you are less likely to hold the application up.
- Don’t forget to take out protection – with the cost of living crisis and rumours of the country falling into a recession, it is essential your provide yourself with financial protection. This is to ensure your family and mortgage payments are protected if the worst should happen in the future.
If you are wondering if now is the time to remortgage my home or if you have any questions after reading the October remortgage market update, please get in touch. We don’t charge anything up front, so by speaking to us, you are under no obligation. We are based in Salisbury, Wiltshire, but we can help you no matter where you live in the UK.
The information contained within this article was correct at the time of publication. It is intended for information only and does not constitute advice. Your Mortgage Expert Ltd and Mortgage Advice Bureau cannot be held responsible for information that was correct at the time of publication but subsequently changes or goes out of date due to changes in legislation.
***Source : https://www.bbc.co.uk/news/business-63041679
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“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
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