Re-Mortgaging – Don’t Assume You’re Getting the Best Deal

There are many different reasons why people may want to re-mortgage; apart from just wanting to avoid reverting to their existing lender’s standard variable interest rate.

They may also wish to obtain a better interest rate which may enable them to save money.  Many people are releasing equity to carry out long awaited home improvements. Some are extending their properties to make their homes larger as opposed to having to move house. By doing this they are able to channel what they would have paid in stamp duty costs towards home improvements instead.

Either way it makes sense to get the right mortgage advice.

Don’t Assume You’ll Automatically Get the Best Mortgage Deal

People often make the assumption that when their current fixed or tracker rate mortgage ends their current mortgage lender will offer them another great deal. What a mortgage lender won’t tell you is that you may also be able to secure a better deal by shopping around via other lenders.

An article posted by the Financial Times in March 2017 suggested that the difference between the average mortgage borrower’s two-year fixed interest rate and the lenders reverted standard variable rate (SVR) was at an eight year high. Ample motive for people to consider a remortgage at the end of their fixed term! Mortgage lenders typically set their standard variable rate quite a bit higher than the base rate, so even though base rates are historically low at the moment, allowing your mortgage to revert to the SVR could still be a costly move.

A case in point came from a client who recently approached Macbeth Financial Services having been offered a new rate by their current mortgage lender. We reviewed the entire mortgage market and managed to source a more competitive mortgage interest rate which provided the client with a monthly saving of around £300.  Whilst we can’t always promise to save you money we will always strive to find the mortgage most well suited to your financial circumstances at the time.

You may think that it’s complicated and time consuming to switch lenders but that’s often not the case. Most mortgage lenders offer incentives to make switching mortgage easier, such as fee-free re-mortgaging packages which include both valuation and legal costs. If you use an independent adviser they can also help locate the most appropriate and most competitive rate for your needs by assessing the entire mortgage market for you.

The last thing we would want you to do is to pay more than you need to. Here at Macbeth Financial Services we always contact our clients long before their existing mortgage deal ends. We then review their personal and financial circumstances to ensure that they get the best deal. We make it our priority to prevent our clients from drifting onto their lender’s standard variable rate, which more often than not, is not the best rate available at that time.

If your mortgage deal is due to end soon or if you are already on your mortgage lender’s standard variable rate, then it’s worth seeking advice now as you may be able to obtain a more competitive deal. For impartial independent mortgage advice call Macbeth Financial Services today on 0118 923 5097 and speak with Brian directly. 

 

Please be aware that failure to maintain mortgage repayments may lead to your home being repossessed.

Author: Brian Mooney | June 22nd, 2018

Contact the author

Brian Mooney
Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767   info@macbeths.co.uk