25 July 2019

It pays to plan ahead when it comes to remortgaging

While long hot sunny days are at the forefront of most people’s minds, those who can bear to look a little further forward may find that it will save them money in the long run. Over £26 billion-worth of mortgages are due to mature this October, the largest monthly volume of the year, with lenders anticipating a surge in remortgage applications over the summer.

If your mortgage deal is coming to an end, be prepared. Speak to a mortgage broker like SPF Private Clients ideally a few months beforehand, although if you have taken out a mortgage with us in the past, we will be getting in touch with you. Think about whether you need extra cash for home improvements or debt consolidation – this is the time to mention it so it can be factored into the sums.

Those coming off five-year fixed-rate mortgages will find that rates are now considerably cheaper for an equivalent deal, meaning lower monthly payments. You may also find that your property has appreciated in value since you last took a mortgage out, resulting in a lower loan-to-value band, and possibly a cheaper rate.

Consider all the options available to you. Your existing mortgage lender is likely to be in touch offering another deal for you to seamlessly slip onto but this may not be the best option. Make sure you compare it with what else is on the market, rather than assuming it’s the best deal. SPF Private Clients can help with this.

If you have savings earning next-to-nothing in the way of interest but wish to hang onto them, rather than paying down the mortgage, it may be worth considering an offset. This will enable you to reduce the interest you pay while still retaining access to your savings in case of emergency.

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