Getting a mortgage, especially if you’re self-employed or your finances have badly affected by the coronavirus, is much harder than any other year, says Stephen Kerrigan, Fee Free Mortgage Advisor from Doncaster.
Lenders are offering mortgage payment holidays and tailored support to mortgage holders who have been badly affected by the coronavirus, especially those who have been furloughed or lost their job due to the heavy restrictions placed onto the UK.
Even if you’re a First-Time Buyer, looking to get a mortgage by using a good broker is worth their weight in gold, especially in this time. However, for most people, their mortgage is their biggest financial commitment, and it follows that streamlining the largest debt can produce the largest saving – maybe even £1,000 each year.
You could be the kind of person who shops around looking to get the cheapest deal, we all are in our own little and unique ways – but, you’re more than likely to be missing the trick by not doing the same to save money on your mortgage.
Before you start your Remortgaging journey, it’s worth watching Stephen Kerrigan’s top mortgage tips video, so you’ll know what you should be looking for.
The main reason why you might want to Remortgage is to save money, such as Jimmy from Doncaster.
So, Remortgaging worked for Jimmy – but will it work for you? Here are the main reasons why you should do it.
When your mortgage comes to an end, your lender will put you on its bog-standard variable rate (SVR). It’s likely to be higher than your old interest rate and higher than the best buys available. If so, you want to be ready to Remortgage to a cheaper rate. Start looking around 14 weeks before your rate ends.
If you are tied into an initial deal then you might have to pay an early repayment charge which can be huge, often 2-5% of your outstanding loan. Plus, there is usually a small exit fee (it might call it an 'admin fee' or a 'deeds release fee') when you repay any mortgage.
If the value of the property has risen rapidly since you took out your mortgage, you may find you're in a lower loan-to-value band, and therefore eligible for much lower rates. Again, you need to do your sums but it's definitely worth a look.
When people talk about adding non-housing debts to their mortgage, whether it’s for a new kitchen, a holiday or to help existing borrowing. This could be a necessary evil, helping you to get you out of a hole.