Is it a good time to Remortgage? Should you be worried about your monthly payments going up?

Is it a good time to Remortgage? Should you be worried about your monthly payments going up? What are your remortgage options?

The Financial Conduct Authority (The UK Regulator of Mortgage Products) reports that approximately 1.5 million homeowners are expected to reach the end of their initial fixed-rate mortgage periods in 2024. That is a lot of monthly mortgage payments which are likely to increase, given that Bank of England Base rate has increased to 5.25% overt the past 18 months. Anyone that took out a mortgage before August 2022, is likely to have a lower fixed rate. This means that if you are one of these 1.5m people coming to the end of your fixed rate, your mortgage payments are likely to increase, significantly.

You should not delay speaking to an Independent Mortgage Advisor at your earliest opportunity. They can help you plan a way forward to ensure your mortgage still works for you, even if your mortgage interest rate is likely to be higher. There are options – dependent on your circumstances. You should review your current mortgage without delay, to ensure you can have as many options as possible.

Your Mortgage Advisor will be able to liaise with your existing mortgage lender (usually they have access to the same mortgage products), as well as the whole of market.

Although most banks will accept a direct approach from a customer, there are lenders which will only offer access via a qualified Mortgage Intermediary. Mortgage Lenders can only give information and sometimes advice, based on their own products only.

Here are some Best Buys which are currently available through Mortgage Intermediaries;

*Best Buys for Residential
2 years fixed rate: 4.68%
5 years fixed rate: 4.34%

*Best Buys for Buy to Lets
2 years fixed rate: 3.69% (3% Product Fee)
5 years fixed rate: 4.04% (3% Product Fee)
Source – Moneyfacts

*Please note that the products above are available at the time of writing this article (11:00 am 27th March 2024). These may not be available to all clients or property types – subject to status. Please contact one of our Mortgage Advisors for full details. These products are not recommended to all clients, as they may not be suitable for your specific needs and objectives. These products are for generic illustrative purposes only and should not constitute advice. YOUR HOME MAY BE REPOSSESED IF YOU DO NOT KEEP UP REPAYMENTS.