Thinking of remortgaging in 2020?

30th July 2020

Lockdown has prompted many people to think about their current home and how it suits their lifestyle. Rather than moving to a new property, perhaps to accommodate a home office, it could make sense to stay put and release funds to give your home a makeover. Remortgaging can also make sound financial sense by making sure you are on the most competitive deal for your circumstances, whether you are thinking of releasing additional funds or not.

Take advantage of record low mortgage rates

After two Bank of England rate cuts brought the Base Rate down to 0.1% earlier this year, mortgage rates are at record low levels.

With monthly mortgage repayments representing a major chunk of the average family budget, it makes sense to shop around to see if you can get a better, more cost-efficient mortgage deal. In some cases, homeowners can save hundreds, or even thousands, of pounds a year by moving to a more attractive rate with a different lender.

Inertia doesn’t pay

If your current fixed-rate, tracker or discount deal has ended or will end this year, you may find you’re automatically moved to your lender’s Standard Variable Rate (SVR) and could be paying way over the odds. The SVR is usually pegged to a percentage above the bank’s base rate and as the name suggests, it can rise and fall. SVRs do not normally offer the most competitive rates and anyone on an SVR is vulnerable to interest rate rises in future.

When to remortgage

You may be thinking about remortgaging if:

  • Your current deal has ended or is due to end this year
  • You are looking for a better rate
  • You want to overpay, but can’t do this on your current mortgage
  • You want to borrow more, perhaps for home improvements
  • Your home has increased in value and your loan-to-value ratio means you can get a better deal by remortgaging.

Don’t delay

It can take a couple of months to complete the remortgage process, so it makes sense to contact us for advice without delay. If you’re currently locked into a mortgage deal that has exit charges, you don’t have to wait until it has come to an end. Your adviser can help you find a deal three or six months before your lock-in period finishes.

Good advice pays

Things can change very quickly in the mortgage market, so if you’re thinking about remortgaging, now is the time to give it some serious thought. Remortgaging won’t be right for everyone, but we can advise you on whether it’s a suitable option for you, explaining the costs and any potential implications along the way. In a complex environment, getting good advice can really pay – so get in touch and we’ll guide you through the process.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.