Mortgage Winter Newsletter 2020

Your Mortgage Advisor Discusses


New year, new mortgage?

Welcome to 2020. A New Year brings with it excitement, optimism and a fresh confidence to achieve new goals. Financial wellbeing is often one of the top resolutions set at this time of year and for Homeowners throughout the country, the key to this success could be closer to home than they think…

Mortgage rates have plunged in the past few months and are currently at their lowest point in four years. For borrowers, this could be the time to strike to knock years off the mortgage term or save thousands in interest.

Remortgaging: unlocking the benefits

Remortgaging means switching your existing mortgage to a new deal and lender whilst living in the same home. The most common reason to think about remortgaging is to cut the cost of a mortgage and to reassess finances. This can be particularly advantageous whilst interest rates are low.

Saving on mortgage repayments could be the key to unlocking your financial goals for 2020 as freeing up cash could help the funding of other projects, purchases or life experiences. Similar advantages are achievable for those who “overpay” on a current mortgage. Taking a lower rate whilst maintaining the same monthly repayment could see years shaved off the term allowing financial freedom sooner.

Get ‘remortgage ready’:

As a remortgage is an application for a new mortgage loan, new lenders have an obligation to lend fairly and responsibly, they will therefore underwrite your application and value your home. A solicitor will also be needed to oversee any change of lender on the title deeds. Good news – the legal costs and valuation costs are covered by any new lender.

Get in financial shape:

Building up a picture of your own financial health prior to applying for a new mortgage will speed up the application process, and likelihood of approval. Here are some handy tips to get remortgage ready:

  1. Organise your expenditure: A new lender will typically want to review three months previous payslips and three months previous bank statements. It is an opportune time, before a mortgage application, to review your own spending habits. An income and expenditure chart could be useful way to declutter and restructure your household outgoings.
  2. Know the value of your home: An up to date valuation of the property is vital in determining what deals may be available when you come to remortgage. It is advisable to seek the opinion of local property experts to obtain a market value.
  3. Check your credit rating: It is possible that your credit rating has changed since you last applied for a mortgage. A good credit score is vital towards a successful application. You can review your credit score online and most lenders use Experian or Equifax as point of reference when assessing a mortgage application.
  4. Your existing mortgage deal: You could be tied into a deal with your existing lender and have to pay a penalty known as an early repayment charge (ERC) to switch. If this is the case, we would calculate if the overall saving made it worth paying the charge. It is vital you understand the position with your current lender prior to a new application.

For more information on rates and advice for remortgaging please contact the mortgage department. Wishing you a healthy and prosperous new year.

FREE mortgage advice until 29 February

It's an expensive time of year, so we want to make things easier. Refer your friends to our mortgage team and they will pay £0 for purchases, buy to let and remortgages service until 29 February.