When your current mortgage deal comes to an end you might be tempted to do nothing and simply move on to your lender’s Standard Variable Rate (SVR). However, by doing so you could risk your mortgage rate more than doubling.
According to Moneyfacts, fixed mortgage deals taken out two years ago attracted an average rate of 2.31 per cent, thanks to increased competition between lenders. Two years on and with average SVRs sitting at or around 4 per cent, the jump in mortgage payments at the end of your deal could mean your repayments increase by £279.34 a month, or £3,352.08 a year on average. That’s a payment shock you’ll want to avoid.
Remortgaging to a better deal
Finding a new mortgage deal is a lot easier than getting your first mortgage. You don’t have the stress of finding a home, working with estate agents, negotiating contracts or worrying about onward chains.
When it comes to remortgaging you could choose to stay with your current lender, and they might offer you something tempting to stay with them, but you don’t have to. Switching to a new lender may seem like hassle you don’t need, but it’s worth the effort as it could mean you get a better rate.
Whether you’re staying with your current lender or moving to a new one, just as with your initial deal it can pay to get advice to help find the most suitable mortgage for your needs. That’s where we come in.
The value of our advice
We’ll look at your current deal and work out if there are any exit fees or early repayment charges.
We’ll discuss your needs and future plans; whether you want to pay off your mortgage early or you’re looking for lower monthly repayments.
We’ll check any changes in circumstances and how they impact your financial plans; have you started a new job or reduced your hours to care for a new baby?
What’s more, we’ll complete your mortgage application and take care of the legwork for you. As part of Openwork Ltd, one of the UK’s largest financial adviser networks, we can access competitive rates from most of the UK’s best-known lenders.
You may be able to save money if you switch to a new deal. Don’t leave it too late and end up paying more than you have to. Contact us today to discuss your remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage