Opportunity With Falling Mortgage Rates.
Despite the current uncertainty surrounding mortgage rates, it’s important to understand the
opportunity should rates begin to fall. If this development progresses into the year, it could open up
new opportunities for those looking to enter the property market but also bring significant benefits for existing Mortgage Holders.
Homeowner Opportunities.
Existing homeowners should closely monitor the current interest rate trends. Refinancing a mortgage to secure a lower rate
could lead to substantial savings over the life of the loan. However, it’s essential to weigh the potential benefits against associated costs, such as arrangement fees and legal expenses.
You will also need to consider Early Repayment Charges (ERC) Early Repayment Charges are fees imposed by lenders when borrowers pay off their mortgage earlier than the agreed-upon term. This allows your lender to make up for the lost interest they would have made over the remainder of your mortgage agreement. Speaking to a Mortgage Advisor would be a good step as they will check with your existing lender to see if Early Repayment Charges will apply or when they will end.
Our Advisers can also look at options for you including Free Legal and Free Valuation, as many lenders will offer this incentive. However, our advisers will also look at what your existing lender is offering, to make sure you get the best deal available based on your circumstances and needs.
Is it worth switching?
Determining whether it’s worth switching depends on various factors, including the extent of the interest rate difference, the
remaining term of the mortgage, and associated fees. Before making a decision, you should carefully assess the potential savings against any ERC and additional costs involved in the switch. Our Advisers can help you with this and advise you on best way forward.
The importance of Early Repayment Charges.
ERCs can significantly impact the financial viability of switching mortgages. Some mortgages have
high ERCs, particularly in the initial fixed-rate period. However, as the market evolves and interest rates
fluctuate, some lenders may offer more competitive rates that make switching worthwhile.
Schedule a consultation with your Mortgage adviser to discuss how the current mortgage rate environment can be used to your advantage. Whether you’re a current homeowner looking to refinance or a prospective buyer seeking
to capitalise on favourable rates, your adviser is there to provide the guidance you need.
For more information, contact us and we will be happy support you and discuss the options available to you
Call Now on 0141 280 1992 or use the contact us now button and we will call you back…
Michael Markey Mortgage Adviser CeMAP, CeRER