We have had quite a few blogs on how to get yourself ready for a remortgage, the idea behind our blogs is to help people to get the right advice to help get them ready for all elements of mortgages.
Last couple of weeks, there have been reports about why it is a good time to re-mortgage. In October, over £26bn worth of mortgages deals are due for renewal. Which is the largest for the month this year. So why are we telling you this. Well anyone who’s mortgage deal is up means that you could potential save a lot of money on your mortgage.
At the moment there is scope to save hundreds each month on your monthly mortgage payments. With much more competitive rates these days people coming out of a 5 year mortgage maybe looking at something much better than what they are on now.
On top of that your mortgage value could be better. If your house has appreciated in value. It means your loan to value ratio will be better and you may qualify for an even better rate:
“Official Land Registry data shows that the average UK house price in October 2014 was £191,855, and had risen to £229,431 by May this year (the latest month for which figures are available) – an increase of just under 20%.
The Yorkshire says a homeowner who initially borrowed 85% of a £200,000 property in October 2014 at a market-average five-year fixed rate of 4.25% could benefit from a lower LTV of 65% and take advantage of the society’s two-year fix priced at 1.54%, which would save £201 a month in repayments. (However, this deal does involve paying a £1,495 product fee).”
(you are now departing from the regulatory website, Coleshill Mortgage Services or Quilter Group are not responsible for the accuracy for the linked site)
Please see the full article here
What should you do then? Well with remortgage it is always a very individual situation so it is hard to tell you what to do, but its always worth checking your deal and when it expires, most have a period before when you can move out of the deal to another without incurring costs.
Then speak to someone you trust. It is the best way for you to make sure you see the whole of the market and get the best deal you can. Don’t just speak to your lender. They have a limited amount of products they can offer. So for a potential of £200 savings per month, it is worth spending the time to get the right deal for you.
Your home may be repossessed if you do not keep up repayments on your mortgage.