Re-mortgaging has got a whole lot more stressful. It’s like being in an ever-changing maze.
Many are feeling anxious about remortgaging following last year’s economic bomb dropped by Liz Truss and Kwasi, steepling interest rates and the cost-of-living crisis. All of which is amplified by the daily news.
But fear not, because with a little bit of calm and planning, we can reduce that stress and find the right mortgage product for your unique situation.
Elephants and interest rates
Let’s address the elephant in the room – the days of super low rates are over. While it’s disappointing to say goodbye to those fantastic 1% to 2% deals, we have to make peace with the fact that they may not be coming back anytime soon.
That doesn’t mean there aren’t good options out there – it just means we have to adjust our expectations. Interest rates have been this level before, and even higher.
“Look at this great deal”
I know you’ve had a friend or a colleague tell you about the “must-have” product they just got, or their ‘super low interest rate’ for their remortgage.
The truth is, everyone’s situation is different. What might be the perfect fit for them may not be right for you. Don’t feel pressured to follow the crowd – take the time to assess your own needs and priorities.
For example, if you’re a young family staying in your home for the next few years, you might prioritise the security of knowing exactly what your payments will be for a longer period.
In that case, a 2-year tracker may not be the right choice for you with the Bank of England rates moving rapidly at the moment.
On the other hand, if you’re planning to move soon, a tracker might be a more flexible short-term option.
Where to start?
The key is to get ahead of the game. Don’t wait until the last minute to start thinking about your remortgage options.
Ideally, you should be speaking to your existing lender and a broker at least 6 months before your current deal ends.
This gives plenty of time to explore your options, compare deals, and find the right product for you.
It’s important to remember that there are a lot of factors at play. It’s not just about finding the lowest interest rate – you also need to consider things like fees, flexibility, and customer service. That’s why it’s so important to do your research and shop around.
Some lenders offer very low interest rates but make up for it with high arrangement fees or early repayment charges.
There’s no need to panic. With a little bit of planning, you can find the right product to suit your needs and budget.
Speaking with an independent mortgage adviser can be helpful and can help set you on a path to making good financial decisions on your mortgage.
If you’d like to have a conversation about your mortgage, please book a call below, or email me, firstname.lastname@example.org.