When is the right time to remortgage?
Are you happy with your current mortgage? If so, then that’s excellent news. However, if it’s been a long time since your mortgage was last reviewed, or the end term is coming up soon, then a remortgage may not be far away.
Your circumstances may also have changed in the years since your current mortgage was arranged, so it’s always worthwhile seeking advice to check whether the mortgage you hold is right for your current situation.
Things to consider;
- If you have a fixed rate deal and it is coming to an end, you will likely end up on your lender’s standard variable rate (SVR) once the fixed period has ended.
- If you have a variable rate deal* you may be worried about rising monthly costs. If you are concerned, you may find a fixed rate deal will give you peace of mind with fixed monthly costs. However, it might be worth weighing up the pros and cons of costs of remortgaging, and note that fixing into a rate means you may not be able to benefit in reductions in the future.
- If your share of the property’s value has grown* because the price of your property has gone up, lenders may be able to offer you better terms. A lower loan-to-value (LTV) could help you to access a lower rate by remortgaging, but it’s worth considering your options as a whole.
- If you want to borrow more money*, remortgaging by using the equity in your property can sometimes be a popular way to raise finances, however there may be cheaper ways to borrow.
- If you want more flexible features* – Your existing mortgage deal might have strict terms regarding overpayment and will prohibit you from paying more than the contracted monthly amount. If you’d like to repay more quickly, a remortgage could allow you to switch to a deal that allows a certain amount that you can overpay without incurring fees. Other features, you might want to look for include having the ability to apply for ‘payment holidays’ when cashflow is tight.
*IMPORTANT – If you are currently in a deal that is not due to end and decide you wish to remortgage to another lender, there may be high early repayment charges to leave.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Speak to a mortgage broker to discuss your options further, they can help talk you through your circumstances and can offer our experience and knowledge of the market and products available.
Article supplied by SJ Financial Solutions - Stuart Mosley
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from mortgage and protection services and set up SJ Financial Solutions to change this. If you would like to get in touch, please see contact details here.
All the information in this article is correct as of the publish date 23rd February 2023. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
Published: 24 February 2023
