Is now the time to remortgage?

April 29, 2018 by Pinnacle Group

In 2018 to date we are seeing a high proportion of clients who are choosing to hunker down, and make the most out of their current situation.  Recent trends have shown clients are more aware of securing a remortgage deal which is perfectly suited to them, with no exceptions.  Whether that is to simply obtain a new rate of interest for the short, medium or long term, raise funds to clear existing debts, carry out essential / aspirational home improvements, or a combination of each.  Ultimately it is dependent on your own circumstances, but in most instances the options can be vast. 

The days of just accepting whatever your current lender offers upon expiry of an existing deal, has effectively ceased.  We now live in a time where irrespective of the item the options are broad, and our mindset is rightly tuned to get the best deal possible, whether that’s your phone contract, an insurance arrangement, or utility bill, ultimately it’s money best served in your pocket than the providers.  The only true difference between your mortgage setup versus other general bills, is that your mortgage typically equates to a larger chunk of your monthly expenditure, so the saving can be greater if the right deal is procured.

Two questions we get posed quite often is how Brexit could impact both your mortgage and house price.  Like most in our profession we have to stay largely neutral, as the effects and facts of what Brexit will bring are unknown.  What we do discuss though is what would happen if interest rates rose significantly in the coming months and years, and how this directly impacts on someone’s mortgage payments in real terms.  Almost a worst case scenario effect.  The other key factor here which makes up part of our advice process, is that a client can explore all fixed rate options, as the more cautious consumer may opt for a longer term fixed rate deal such as a 5, 7 or 10 arrangement, opposed to the shorter fixture of 2 or 3 years.  Ensuring the right deal is chosen is critical, and that’s where our mortgage experts come in.

Something else we commonly see are clients deliberating on whether to sell and upgrade their current home, or release equity in the current property to make improvements / alterations to the property with the view it will not only increase the future value of the property but also the potential saleability.   The more instant effect is the client can enhance their living quarters, and overall have a home they’re even more comfortable in.

From our experience there is only a few scenarios which could hinder borrowing additional funds or securing that market leading rate, and that is if you now fall short of a lenders minimum income requirement, your credit profile has been affected by an adverse situation, or for whatever reason your circumstances have changed to fit more a niche market (e.g. you’ve recently gone self employed or started contracting etc).  That said we’d always explore all lender options as we have access to across the whole of the mortgage market.  We can identify quite quickly if you are a ‘mortgage prisoner’.  If this is the case then we can approach your current lender to source their best available deals on offer, even if you don’t meet their current lending criteria.  The beauty of this back-up option, is you know that your lender will look to treat you fairly.  The only caveat to this can be if your current lender is dormant, and they don’t engage in any new offerings.

In summary though, remortgaging now or in the coming months could be the optimum time, as mortgage rates remain incredibly competitive, and with Brexit looming more cautious borrowers can look to secure a deal that offers them that extra security of a long term fixed deal, safeguarding them against potential rate rises over a specified period of time.

This ‘piece’ isn’t designed to be a sales pitch, as our objective is to enlighten our fellow Leigh on Sea residents on what we’ve been noticing as trends of late.  That said you may have seen our recent advertising around the town, focusing on our unique proposition, covering all manner of finance and property related areas.  To date this has been well received, and hopefully our outreach will mean you’ll be in touch in the future for advice.

Pinnacle Group
119 - 121 Broadway West
Leigh-on-sea
SS9 2BU 

Tel: 01702 831920
Email: info@pinnaclefpgroup.co.uk