If your current mortgage deal is due to expire within the next three to six months then you really should start looking at what is available to you now, otherwise before you know it your lender will be switching you to their Standard Variable Rate (SVR) and you could see your monthly payments quadruple overnight.
You will have two options available to you:
(1) Rate Switch
The rate switch means you stay with your current lender and choose one of the many deals that they will have available as an alternative to their SVR.
Why Rate Switch?
- Fixed interest deals for perhaps 2, 3 or 5 years.
- A flexible tracker deal which was not available when you last spoke to your lender.
The rate switch is a very quick and simple solution and is likely to keep your monthly payments at the existing level or see changes that are perhaps slightly more or slightly less than you are currently paying. It would certainly stop your payments going through the roof under the SVR which is the default once your current deal ends. A quick and simple chat with one of our brokers and we can advise on the best rate switch for you and have it in place ready for the expiry of your current deal. This is by far the quickest and easiest option because if you are simply looking for a new deal and not borrowing any more money then virtually all lenders will do this without asking for any income proof or credit checks. It is simply a call to us and we can grab you a new deal.
(2) Re-Mortgage
There may however be a good reason for you to change lenders when your current deal ends. This is known as a re-mortgage.
Why Re-Mortgage?
- The main reasons for re-mortgaging would be that a different lender is offering lower interest rates than your existing lender.
- Or you wish to increase your mortgage amount (for various reasons such as buying an investment property or a refurbishment on your home) and a new lender is the best or perhaps the only option open to you.
- Perhaps you are on Interest only at the moment and wish to change to Repayment mortgage (interest & capital).
A re-mortgage can often save you a lot of money each month as lenders do want your business and you may find a new lender will offer you a deal that your current lender will not consider, however it is not as simple as a rate swap. When you move from one lender to another you will need to provide full income proof, be subject to a full credit check and if borrowing more money then you will need to show what it is to be used for. The process is certainly not as demanding as a new house purchase, but it is more in-depth than a rate switch. It is always best to allow a minimum of three months before your existing mortgage deal expires to get a re-mortgage in place. If you wait until the last minute then you risk your existing lender switching you to their SVR whilst you are completing the re-mortgage and that could see your payments in the meantime increasing threefold or more.
A quick call to one of our brokers three to six months before your current deal expires will give us plenty of time to find you the best alternative deal and to have it in place and ready for when your current deal expires.
Super Low Interest Rates – Make Sure You Don’t Miss Out!
Interest rates are currently at one of the lowest levels they have ever been. If you have a long term fix rate mortgage about to come to an end then you may well find that a rate switch or a re-mortgage could save you thousands of pounds a year in interest payments. Do not let yourself pay more interest than you need to, there will be plenty of other ways you can enjoy your money than to pay more interest than you need to!
How will you spend the money you save on interest? Why not call us today and find out what is possible…
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