Remortgage during the Corona Pandemic and lockdown

The coronavirus has changed the dynamics of how government, banking, and society used to work. The pandemic is about to get over and the country is getting unlocked now but various scenarios have changed to cover the losses.

In this article, we try to help those who want to remortgage due to a change in financial situation. For those who are not aware we are available online and our advice service is functioning as usual. Mortgages during this time of pandemic are not as gloomy as one must be thinking. You just need to rethink your finances and choose the correct lender based on your requirements.

You should try to connect with your lender and ask about the various assistance available with them. If you have good credibility, lenders will help you out and don’t draw severe actions against you. Lenders also want to manage relationships with good borrowers. And if you are not in the good books of the lender then you have to rethink how to approach the current situation. Based on the situation there can be 3 different cases of your mortgage which can help in remortgaging.

If your mortgage deal is ending in few days

If a pandemic has affected the financial situation that constrains you in changing your lender but you have the chances of striking a new deal with the lender. Then when your mortgage is about to get to the end you can definitely ask your lender to arrange a new product transfer deal. This can be arranged by us and we can give you a list of the current lenders from the market.

If your mortgage deal is ending in 6 months

At least a 6-month gap before the mortgage is ending is an ideal time to work in advance. Many lenders offer remortgage which is valid for 6 months. Taking advantage of the commitment which you will make in advance, you can ask for lower rates and switch when your current mortgage expires.

There are a few more reasons why to apply for a remortgage early in advance. The pandemic has led to low rates keeping the profit margin low for lenders. The only way for lenders to be in business is to lend more. There is a reduction in house prices and people pulling out of the deals create a good situation for you to apply off early. And last, many lenders have not passed the banks fixed-rate mortgage into their deals yet.

It’s difficult to predict how the market will progress. But the current rate seems to be the best low rate

Merging your credit obligation into your mortgage

Consolidating all your commitments into a mortgage can be very expensive. This won’t work in your favor and can be more expensive than balance transfer deals or credit card debts. Generally, you secured it against your home that is taking a risk so high where earlier there was no risk of such sorts. So if you want to reduce your outgoings and trim your monthly obligations then you should act now. We can help you get an idea of whether a liability Consolidation remortgage is a right answer in your scenario.

Alter your mortgage term

Many of this is not probably aware of but one can alter the mortgage term and hence the monthly commitments of the payment. This can be done on your existing deal also even if you have penalties.

This is again can be done as a part of remortgage discussions and we can help you find the best deal

Financial tight spot

If the pandemic has affected your source of income and has put you in a difficult position to make payments. Your first step is to connect with your existing lender and discuss the options to prevent arrears. The lender is legally obliged to try and prevent you from going into arrears with a residential loan. They should consider temporary interest-only loans or a payment holiday. If you go into arrears, you will incur costs that may not be refundable. And Arrears will affect how much you pay for a new mortgage. So better plan in advance.

Please keep in mind also that every solution offered by lenders has their pros and cons. You need to be careful because a solution like this tends to costlier in the future. Whether to go ahead with consolidation of loans risking your home or searching for any other viable solution, we can help you out.

Extra borrowing 

You could borrow more money from your current lender. This is usually only a good idea if it doesn’t make sense to replace your current mortgage because the old one is very competitive or new mortgages are even better.

The lockdown as mentioned earlier has brought some changes in the Mortgage industry. Lenders have ceased physical evaluations temporarily. That might affect if you are including your innovation expenditure in your mortgage commitments. You can now understand that assessing and selecting a lender needs a lot of consideration. You cannot go on the face value of the lender and the offer he is making. We can help you find the right lender for you by making sure you get the right solution in terms of cost, simplicity, and time and effort involved in understanding the requirements till the mortgage offers. We can help you make the process fast, fluid, and low stress. We can work with you over the phone and the internet to work around your work schedule.