As life changes your mortgage should too
The cost of living has shot up in recent months, with inflation expected to reach a peak of 8.7% in Q41 and many families facing a significant hike on their annual energy bills from April.
With finances squeezed, every penny counts – so it’s important to consider all the options for streamlining your outgoings. If you’re reaching the end of your current mortgage term, taking the time to explore whether more favourable rates are available could really pay.
Paying over the odds?
If your mortgage deal has expired and you are on your lender’s Standard Variable Rate (SVR), it is likely you’ll already have been hit by recent increases to the Bank of England base rate. SVRs are typically higher than those offered by available deals and fluctuate as interest rates rise and fall. Switching to a fixed rate mortgage deal instead could both save you money and make budgeting easier, as you’ll know exactly what is going out each month.
Time for a review?
While you can switch your mortgage at any time, you may face early repayment charges (ERCs). Even if your current mortgage deal hasn’t quite expired, however, you could start the remortgaging process up to six months beforehand. Many lenders will permit you to lock into a new deal in advance, so starting early will give you the time you need to assess your available options. That’s where we can help – we can scour the market for the most suitable mortgage finance for your circumstances.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. Equity release may require a lifetime mortgage or a home reversion plan. To understand the features and risks, ask for a personalised illustration.