Many people choose to re-mortgage at the end of a fixed rate tie-in period or at the end of a special deal. If you do not re-mortgage then you will revert to your lenders standard variable rate, which is normally much higher than the rate you were previously on during your deal period.
It may suit some borrowers to revert to a standard rate with no tie-ins, for example if you are thinking of moving home in the near future, or perhaps aren’t sure of your shorter term plans. Sticking with the variable rate allows for a greater degree of flexibility as there are often no early repayments charges involved if you do switch lender or pay off your mortgage in full.
But if there are no plans to move, it makes sense to consider what alternative deals are available to you. Most lenders are happy to offer existing clients a new special rate at the end of a deal as they are usually keen to keep your business. Loyalty, however, isn’t always rewarded so it is worth checking the whole market to make sure you have the most competitive deal.
At Malleny Mortgage Solutions our advice is to start looking for a remortgage deal around four months before the end of your current deal.
We can help in straightforward like for like cases or where your personal situation has changed, or the new mortgage will be different from your existing one. For example you may wish to alter the loan amount or change the term.
Let our helpful consultants do the leg work to find the best solution tailored to your needs.
Call or contact us now.