Should I Remortgage Now?
Recent research has found that remortgages have grown by more than 25% between the months of March and April 2022. This is largely down to several base rate rises announced by The Bank of England in 2022 and the response from lenders to raise rates in line with base rate increases.
Many Mortgage borrowers are now looking to ‘lock-in’ the current available rates in a long-term fixed mortgage ahead of any more potential rate increases – but is this the right thing to do? Lets look at the base rate rises and the cost-of-living crisis and see if i is something you should consider?
Rising Mortgage Interest Rates.
The number of remortgages have jumped in the last few months. Over half of borrowers opted for longer term 5 year fixed rate products. With rates unlikely to to drop in the coming months, it’ is vital you take time out to review your existing Mortgage
If you are on a variable rate Mortgage or your current fixed rate Mortgage is ending soon, now could be the right time for you to consider in a new longer term fixed rate mortgage? Interest rates could in get higher in the months to come?.
As the economy is hit by the cost of living crisis, the war in Ukraine and rising inflation, rates are predicted by most experts to rise in the coming months – so acting now could potentially save you money on your monthly Mortgage repayments.
Using Equity in Your Home.
Remortgaging has other plus points at this present time as well. As well as fixing your repayments for a set number of years, remortgaging now gives you a the chance (for those concerned about making your money go further,) during the cost-of-living crisis of releasing some Equity from their home to help.
Releasing money tied up in your home( Equity) can be a possible solution to making things just a little more comfortable as energy costs and inflation both continue to move higher. So, if you are struggling with the cost of your bills in the coming weeks and months ahead, maybe remortgaging is worth considering if you can release some money from your home when you need it most..
Remortgage for Other Purposes.
There are some people who are lucky enough to be able to withstand the higher cost of living as they are in a slightly better position financially. However, remortgaging can still be something consider even if this is you?
As summer continues( even Scotland has seen some really hot days this year!), maybe you are thinking about some home improvements? A new conservatory? Or a home office? Whatever you may be thinking about, home improvements can be an expensive outlay– but raising finance via a re-mortgage could be a cost effective solution?.
Remortgaging can release cash sums and make them available to you to finance any Home Improvements you are thinking about. Meaning you could get the work done now while the weather is still good….
Remortgaging isn’t the only solution( speak to your Mortgage Adviser for other options), but it does offer the opportunity to fix your payments, raise funds or both.
If you just want to get a potentially better rate than your current deal( especially for those on variable rates) or just want some spare cash to help you during the cost-of-living crisis or if you want to potentially add value to your home by doing some home improvements – whatever the reason, remortgaging could be the solution?
Get in touch now and we will be happy to go through your options…
Michael Markey
CeMap, CeRER
.*Early repayment charges may apply for those on existing fixed rates, always check or speak to your Mortgage Adviser first.