Half of homeowners need to remortgage within 24 months (Source: www.simplybusiness.co.uk)
You may think that your mortgage is nice and secure at the moment, but a lot of people have not considered that their fixed deal will more than likely need to be re-structured and re-applied within the next few years. Although there is no real way of completely predicting how the mortgage market will play out over the next few years, it is almost certain that your new deal, when it comes to it, will be at a higher interest rate than before. Thats why now is a better time than ever to speak to a mortgage advisor and start to create a plan of action so that you can make sure that you get the best deal possible.
The Research
Mortgage lender The Mortgage Lender or TMW, a less well known but nevertheless popular lender when it comes to quirky lending have released figures this week that show that roughly 52% of homeowners will be coming to the end of their current mortgage deals and therefore will need to remortgage within the next 2 years. Although two years may seem like a long time away, it is never too early to start the ball rolling and to get some form of plan in place for the future.
You may be on a fixed deal for the next 12 months at 2% interest rate however, the average mortgage rate in the UK is currently between 5.89% and 6.09%. And this could possibly increase depending on how things shape up with the UK economy and inflation during this critical time. That means that if you don’t plan for the future and speak to an advisor who can help you find the most competitive and beneficial new mortgage deals, you could end up being stuck on a ridiculously high rate.
To put these rate differences into context for you, let’s say you have a current mortgage balance of £300,000 at 2% interest over 30 years. Your current payments would be right around £1,109 a month or £13,308. When your current deal ends in 12 months’ time, you don’t bother speaking to an advisor and just settle for the next deal that your current lender offers. Unfortunately for you, their rates on offer to you are at 6.09% now. That means that your payments have gone up to a whopping £1,816 a month. Or £21,792 a year. If you had spoken to a mortgage advisor about your need to remortgage, they would have been able to help you search the entire market or re-structure your current mortgage deal so that your monthly payments were as manageable for you as possible.
Speak To A Mortgage Advisor If You Need To Remortgage
If you or someone you know will need to remortgage within the next two years, the best thing you can do right now is call an advisor to make that initial contact and get the wheels in motion. It is free of charge to have an initial consultation with one of our brokers. All you will need to do is give our team a call and our advisor will talk you through all of the options that are potentially available to you. Give us a call today to see how we can help.
