We’re all busy so before adding something else to your to-do list you may be asking why remortgage now? Well it will depend on your circumstances but there are potentially some very good reasons why you might want to. Because when it comes to the question 'why remortgage?' not only might you be able to save money on your monthly mortgage payments you’ll also be able to lock into fixed rate deal now to protect yourself against potential interest rate rises. That’s why we’ve put together this article to explain everything you need to know.
Remortgaging to save money
As the cost of living crisis starts to bite who isn’t trying to save as much money as they can on outgoings? Your mortgage is likely to be your biggest monthly expense so if you can save money on it by remortgaging you could feel the benefit in your finances each month. The amount you’ll be able to potentially save will depend on the rate you’re currently paying, the new deal you’re able to get and any costs you might need to pay. However bear in mind if you want to leave your current mortgage deal before it finishes you may need to pay fees such as an early repayment charge. But don’t worry about going through the figures yourself - we have a team of remortgage experts who will talk you through your options and explain any savings and costs to you. Simple!
Protect against rising interest rates
The Bank of England has increased the base rate multiple times since December 2021, and these increases have an impact on mortgages. This is because if you’re on a tracker mortgage, your monthly payments will go up if interest rates rise. If you’re on your lender’s Standard Variable Rate it’s less straight forward because these can change at the lender’s discretion. They lender could pass on the full increase, some of it, none of it – or more if they wanted to.
While if you’re currently on a fixed rate mortgage the amount you’ll pay on your mortgage each month won’t change. Many experts are speculating rates may rise again this year. So by switching onto a fixed deal now you’ll be locking in a rate and protecting yourself in case that happens.
Why remortgage now?
If you’re looking to remortgage, while rates on fixed rate mortgages have been creeping up with each rise in interest rates the good news is there are still some great rates available. But these could disappear quickly especially if the base rate increases again so you might want to move fast. One way to speed things up when it comes to remortgaging is to speak to an expert adviser. They’ll explain all your remortgage options and answer all your questions which will make it easier for you to make a quick decision if you want to.
You’ll avoid the Standard Variable Rate
And if your mortgage deal is due to end then in the next few months it’s a good idea to start shopping around for a new deal. This is because when the initial period of your mortgage ends, you be moved onto your lender’s Standard Variable Rate. This is your lender’s ‘default’ rate and this may be much higher than the rate in your initial period. And if this happens your mortgage payments could increase significantly. You can avoid this by remortgaging onto a new deal. It’s a good idea to start looking 3 to 4 months before your deal ends to give you enough time to remortgage. This will reduce the risk of ending up on your lender’s SVR if your remortgage takes longer than expected.
We have a team of remortgage experts ready to answer all your questions and to help you find the right mortgage for you. So give us a call on 01743 583 500 or click here to give your details and one of our advisers will get in touch.