A Mortgage Is A Necessary Evil But We Can Make It More Palatable

Have you ever thought about moving house and been horrified at the house prices?  You realise that you need an additional £100k just to get an extra bedroom and a bigger kitchen.  We all know that moving house can be a stressful and time consuming process, not to mention a costly one.  The cost of moving can quickly add up especially when you take into account legal fees, stamp duty and furniture removals. You may have pressures to move because of an expanding family and have no choice but to consider moving as your current home just isn’t big enough! On the other hand if you have other motivations, such as lower repayments or home improvements, now could be a good time to re-mortgage instead of move. One major saving apart from the possible lower interest rate will be the Stamp Duty.

When your current mortgage reaches the end of its initial fixed or variable rate “tracker” period, it’s important to reassess and check that the structure of your mortgage still suits you. The value of your home may have risen significantly, especially if you are close to any of the new Crossrail stations.  You could therefore find that you are now in a lower loan-to-value (LTV) situation because of the increase in the equity value in your home.  This can have a number of advantages including access to better interest rates because of lenders’ views of you presenting a lower risk to them.

It seems that interest rates could be at an all-time low and with Brexit on the horizon the Bank of England are unlikely to raise rates in the short term. Indeed, right now, there could be a rate war from the lenders in the market. If you can secure a deal with noticeably lower monthly repayments, now could be a good time to re-mortgage.

At Macbeth we have a wealth of experience and can work with you to discuss your options and ensure that you’re getting the best possible deal.

Author: Simon Claxton | August 25, 2017

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