For those of you who are thinking of remortgaging your house, there are some things you can do to make the process more beneficial for you.
Many homeowners assume they must wait for their current mortgage deal to end before they start looking for a new deal, however, this could mean missing out on the best remortgage rates, which are available now.
If you’re thinking of remortgaging your house, it often pays to act sooner rather than later, particularly when there are predictions that interest rates are going to continue to rise.
We’ve already seen one interest rate increase this year, when the Bank of England’s Monetary Policy Committee voted to raise the base rate from 0.5% to 0.75% in August. The rise has meant steeper costs for thousands of people with variable rate mortgages.
It’s widely expected that there will be further increases over time, so don’t hang around if you’ve spotted a deal you like.
When should I remortgage?
As a general rule, it’s possible to start looking into which remortgage rates are available up to six months before your current mortgage deal is due to finish, especially if you’re worried about rates rising in months to come.
Even if you’re still tied into your existing deal, you can still secure a new mortgage, as many remortgage offers last for between three and six months from date they’re issued. So, for example, if your current mortgage deal is due to end in January, you may be able to secure the remortgage rate you want now.
Different lenders take different approaches, so make sure you’re clear on exactly how long any mortgage offer made will last. For example, some offers will be valid for three or even six months from the date the offer is actually made. Others will start from the point you make your application, and some will have specific completion deadlines in place.
Advantages of finding a remortgage deal early
One of the main benefits of acting early when remortgaging your house is that you’ll be able to arrange for your new mortgage to begin as soon as your existing deal ends.
This means you won’t end up on your lender’s standard variable rate (SVR), which typically happens when your deal finishes. SVRs are usually much higher than other mortgage rates, so if you can avoid being on this type of rate for any length of time, the more money you’ll save.
Another advantage of seeking out remortgage deals before your existing deal finishes is that you’ll be able to take advantage of current low rates. Securing a competitive deal now means that if interest rates do rise again, you’ll have peace of mind that your rate won’t change.
Looking into ways to remortgage your home early is beneficial, as it allows you to find the best remortgage rates. And, if you’ve found a deal you like, remember to not hang around.
If you’re a doctor with unusual income streams, then a Professional Mortgage may be the perfect solution for you. Lenders offering these types of deal are often able to offer flexible options and solutions.
If you would like to hear more about our mortgage service click here.
Content correct at time of writing and is intended for general information only and should not be construed as advice.