Following on from our last guest blog from Rob Starr, CEO of Seico Insurance & Mortgages Ltd. that looked at increasing rates, Loan to Value and credit scores, this blog focuses on re-mortgaging.
What is re-mortgaging?
Re-mortgaging means staying with the same lender or changing to a new lender with the purpose of either getting a lower interest rate deal or releasing some equity for yourself for a number of different reasons.
But why would you want to consider a re-mortgage today when most banks will take two hours to pick up the phone? When they do it’s likely that they will only want to talk about mortgage holidays, because let’s face it, getting you a better rate is hardly top of their priority list right now.
Why should you consider a re-mortgage now?
Re-mortgaging now might just save you hundreds of pounds a month in interest payments, and you can lock the best rate in today and avoid any increases that may occur by the time your rate does expire. The best news is that you don’t even need to ring your bank or try to do it yourself online.
What should I do?
The answer is very simple – call your broker today. They are probably at home right now and are likely to answer your call right away. It will take them perhaps 20 minutes to give you all the information you want, and they can even get it done for you there and then.
The rates available are still at an all-time low, but the expectation is that rises are on the way. If a recession does hit after the lockdown ends, then you can make sure you have pre-booked your two-year or five-year fixed rate today ready to take when your current deal expires.