According to Barclays, one in three homeowners know remortgaging could save them money, yet 49% of homeowners have never switched their deal.
(Source: Barclays, October 2021)
Some borrowers would simply opt to remain with their existing lender on a like-for-like mortgage deal. This is called a Product Transfer, which may be the most suitable route to adopt, and we can help you with this.
Assess the wider marketplace
However, it would also be prudent to consider what’s on offer elsewhere. Particularly, as your circumstances may have changed since you took out the previous deal.
You might be earning more, may now be with a partner/family, possibly benefited from your property rising in value, face financial issues, and so on.
All of this needs to be weighed up, as alternative lenders may be better suited for your current situation.
Whilst, at the same time, your existing lender’s appetite to lend may have waned.
Remortgage early
If you think that the current decent deals on offer are also something you’d like to snap up now, ahead of the end of your deal period, then that’s feasible too.
However, there may be an early repayment charge payable to your existing lender, if you do remortgage. It’s then about doing the maths.
Remortgage for further funds
Any type of remortgaging isn’t simply about looking to take up a new deal for the same amount of borrowing. You may be keen to raise extra money to cover the cost, for example, of home improvements or major renovations.
Sitting on your lender’s SVR
Whatever you opt to do, it’s probably best to avoid coming to the end of your mortgage deal period and not setting up a new one, as the lender will revert you onto its Standard Variable Rate.
On average, this is 4.46%. This could then result in a hefty increase to your monthly payments. Or, conversely, a sizeable saving if you’re currently on an SVR, and now keen to remortgage.
(Source: Moneyfacts, 7 February 2022)
Your home may be repossessed if you do not keep up repayments on your mortgage.
