Are you happy with your current mortgage? 

If it’s been a long time since your mortgage was last reviewed, or the end term is coming up soon, then a remortgage may not be far away.

What is a remortgage?

With the Bank of England Base Rate still going up, it looks odd to see mortgage rates coming down when logic dictates that they should be following the Base Rate*. Yet as the Bank of England raised interest rates by 0.5% to 4% on the 2nd of February, a lender had just announced a five-year fixed rate mortgage at 3.95% for five years1.

Why do I need to remortgage?

Your circumstances may have changed in the years since your current mortgage was arranged, so it’s always worthwhile seeking advice to check whether the mortgage you hold is right for your current situation. You can also reduce your mortgage repayments with a remortgage. 

Things to consider:

  • If you have a fixed rate deal and it is coming to an end, you will likely end up on your lender’s standard variable rate (SVR) once the fixed period has ended.

  • If you have a variable rate deal* you may be worried about rising monthly costs. If you are concerned, you may find a fixed rate deal will give you peace of mind with fixed monthly costs. However, it might be worth weighing up the pros and cons of the costs of remortgaging, and noting that fixing into a rate means you may not be able to benefit from reductions in the future.

  • If your share of the property’s value has grown* because the price of your property has gone up, lenders may be able to offer you better terms. A lower loan-to-value (LTV) could help you to access a lower rate by remortgaging, but it’s worth considering your options as a whole.

  • If you want to borrow more money*, remortgaging by using the equity in your property can sometimes be a popular way to raise finances, however, there may be cheaper ways to borrow.

  • If you want more flexible features* – Your existing mortgage deal might have strict terms regarding overpayment and will prohibit you from paying more than the contracted monthly amount. If you’d like to repay more quickly, a remortgage could allow you to switch to a deal that allows a certain amount that you can overpay without incurring fees. Other features, you might want to look for include having the ability to apply for ‘payment holidays’ when cash flow is tight.

Speak to us to discuss your options further

We can help talk you through your circumstances and can offer our experience and knowledge of the market and products available.

Find out more about remortgaging

*IMPORTANT – If you are currently in a deal that is not due to end and decide you wish to remortgage to another lender, there may be high early repayment charges to leave.

There may be a fee for mortgage advice. The precise amount will depend upon your circumstances but will be agreed with you before proceeding.

Your home / property may be repossessed if you do not keep up repayments on your mortgage.

All the information in this article is correct as of the publish date 23rd February 2023. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

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