With interest rates now at the record low of 0.25% if you’re coming to the end of a fixed rate deal you may be starting to think about what to do next. When you come to the end of your mortgage deal you have three options, you can stay on your lender’s standard variable rate (SVR), you can move onto another of your lender’s mortgage products or you can switch providers. This option is called remortgaging and can help you to find the right mortgage deal for you.
Remortgaging allows you to apply for mortgages that may not have been available to you or on offer when you first applied for a mortgage. Just as it’s a good idea to shop around when it comes to your gas and electricity supplier, shopping around for your next mortgage, rather than just settling for your lender’s default rate helps to ensure you don’t miss out on any good deals. However, it may be more cost effective to stay with your existing lender who may also have new rates available.
And there are some fantastic deals on the market at present. Indeed, with interest rates so low it may be a good time to lock into a fixed rate with even some five or ten year fixed rate products on offer at rates below 3%.
Obviously remortgaging does come at a cost so it’s important to weigh up the fees you will pay against any potential saving but here at We Know Mortgages we can help you to work out whether the time is right to remortgage and how to find the most suitable deal for you.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. SECURING SHORT TERM DEBTS AGAINST YOUR HOME COULD INCREASE THE TERM OVER WHICH THEY ARE PAID AND THEREFORE INCREASE THE OVERALL AMOUNT PAYABLE. YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.