Once the boxes are empty, the furniture rearranged and all the address details are updated, it is not uncommon for most homeowners to put their mortgage to the back of their minds. However, like all financial products and plans; mobile phone tariffs, broadband and TV services etc, you should pay just as close attention to your mortgage product – in particular when you product is up for renewal. As UK Finance – the trade association for the UK banking and financial services sector – have reported in their latest Household Finance Update that remortgage approvals have risen 9.2% year-on-year, we look at why it might be the time for you to consider whether a remortgage could be a good idea.
Avoiding the SVR trap
A Standard Variable Rate (SVR) is the type of mortgage interest rate that your lender is most likely to put you onto when any introductory fixed, tracker or discounted deal comes too an end. As the name suggests, when you go onto a SVR your monthly repayments can go up or down depending on changes in interest rates.
When the Bank of England raised their base rate by 0.25% in August of this year, so to did many people’s repayments if they were on an SVR. If you have noticed that your monthly mortgage repayments have increased recently then we would strongly urge you to contact us today to secure yourself a better rate by locking in a mortgage deal, especially in light of the ongoing uncertainty with Brexit and the unknown factors this may have on the rate of interest over the coming months and years.
Making sure you get your deal early
As many remortgage offers only last for between 3 to 6 months it may be possible to get a great rate now – even if your current mortgage is not coming to an end until next year. There are many competitive products on the market and with access to more lenders than most, your One 77 adviser will be best placed to guide you through the process.
In all, now could be the perfect time to remortgage your property. To find out more, or if you are still unsure what is the best for you, then call our specialist remortgage advisers on 01249 474952 or complete the form below and we will be in contact at a time to suit you.