With the cost of living soaring, it’s never been more important to make sure you’re getting the best possible deal on your mortgage.
You could be paying hundreds, even thousands of pounds more each year than you need to! And, with mortgage rates changing all the time, it’s a good idea to check if you can save money by remortgaging sooner rather than later.
5 Reasons Why Remortgaging Now Could Save You A Fortune
Here are five solid reasons why remortgaging could be a smart move:
1. Could You Be Stuck on an Expensive “Standard Variable Rate”?
Did you know, there are almost a million homeowners stuck on their lender’s standard variable rate (SVR)? That’s the rate you automatically roll onto when your current deal ends, and it’s often much, much higher than other deals.
Think of it like this: If you’re on the SVR, you could be paying hundreds more each month than someone on a fixed rate deal. That adds up to thousands of pounds a year!
Example:
Imagine you have a £150,000 mortgage with 15 years left. On the average SVR of 8.18%, you’d be paying £1,449 a month.
But…
If you switched to a best buy two-year fixed rate of 4.67%, your payments would fall to £1,161 a month – that’s a saving of £288 a month or a whopping £3,456 a year!
2. Mortgage Rates Are Rising – But Could Be About To Fall
Mortgage rates have been going up, but they’re starting to come down again. And that means if you see a great deal, you might want to grab it fast!
It’s a bit like trying to find a bargain in a shop. If you see something you like, don’t wait around, because it might be gone tomorrow.
3. Lock In Your Monthly Payments And Beat The Uncertainty
If you’re on your lender’s SVR, your monthly payments could go up or down depending on what happens to interest rates. It’s a bit of a rollercoaster ride!
But, if you remortgage to a fixed rate deal, you can lock in your monthly payments for a set period of time. No more surprises. That can give you real peace of mind, especially in these uncertain times.
4. Have You Paid Down Your Mortgage? You Could Be Eligible For Better Rates!
As you pay down your mortgage, you build up “equity” in your home. That means you own a bigger share of it, and lenders love that!
With more equity, you could be eligible for lower interest rates. It’s like getting a reward for being a good borrower!
5. Lenders Are Getting Tougher – Don’t Wait Until It’s Too Late
Lenders are becoming more cautious about who they lend to. They’re looking at people’s finances more closely and making sure they can afford their repayments.
If you wait until your current deal ends, it could be harder to get approved for a new mortgage, even if you’ve got a good credit history.
When Should You Remortgage?
It’s a good idea to start looking for a new deal a few months before your current mortgage deal ends. That gives you time to shop around and find the best rates.
And don’t forget, if you’re stuck on a really high mortgage rate, it could be worth remortgaging even if you have to pay some early repayment charges. A broker can help you work out if it’s financially worthwhile.
How To Find The Best Deal
1. Compare Mortgages: It’s always a good idea to compare mortgages from different lenders, not just your current one. Look at the overall cost, not just the headline rate, as arrangement fees can add up.
2. Understand The Acceptance Criteria: Be aware that you might not be accepted for the lowest rates. Lenders have strict rules about who they will lend to, and they will check your credit score and affordability.
3. Get Advice From A Mortgage Broker: Mortgage brokers can be a real lifesaver, especially if your situation is a bit complicated. They know the market inside out and can help you navigate the different lenders and their rules.
Don’t wait any longer! Check your mortgage deal today and see if you could be saving a small fortune.