Remortgages and Product Transfers – what should I do?

It’s estimated that there are £100bn worth of mortgages due to mature by the year’s end. With the cost of living continuing to rise, it’s a worrying time for many homeowners who are facing a substantial increase in their mortgage payments.

Whilst the market is particularly volatile as we write this, it’s true to say that no matter what is going on in the market, it makes sense for home owners to look around to secure the best mortgage deal possible for their circumstances.

If you are one of those whose mortgage rate is coming to an end, you will certainly want to find out how much money you can save, and you generally have two options. You either negotiate a new product deal with your existing lender or you shop around for a better deal.

If you do nothing when your existing deal ends, your mortgage will revert to your lender’s standard variable rate (SVR). Your lender’s standard variable rate will mean that your mortgage payments will almost certainly be higher than what you have been used to paying over the last few years.

As experts expect the interest rates to continue to rise into 2023, this of course brings up several questions for home owners and first-time buyers. Should you take a fixed rate now or wait to see what the rates are like next year? Will the rates go down next year? Should you stay on your lenders SVR and wait to see what happens?

None of us know for certain what is going to happen next year or beyond and there is no one answer as to what you should do, as it will be different for everyone. However, with an increase in mortgage payments certain, our advice would be, it’s essential you shop around to find the best deal to suit you and your financial situation. Ultimately this could mean staying with your current lender, as they may have the best deal.

There are a myriad of lenders on the market, all with their specific criteria. It will take you time to search through the internet, looking at the different deals, filling in forms and getting in touch with lenders.

A mortgage broker such as ourselves can do all the work for you. We know the market and have access to thousands of products. We can save you a lot of time and stress as we know how things work; we know the lender’s criteria and can cut through all the jargon, handle all the paperwork and help you work out the best mortgage deal for your circumstances and what you can afford to borrow.

Everyone is different, so we take the time to really get to know you before we give you any advice. We will then help you understand your options based on your personal circumstances, your financial situation, and what you want to achieve in the future.

We would always recommend you speak to an experienced advisor and, if possible, that you do this at least six months before your current deal ends.

If you’re not sure which option best suits your current situation, or if you simply want to explore what’s available to you, get in touch with one of our experienced advisors to discuss your individual mortgage. And best of all, all of our advice is fee free.