Why now is a good time to review your mortgage

With interest rates at a historic low, the property market booming and the mortgage guarantee scheme well underway, competition amongst lenders is fierce.  For borrowers, this means a larger range of deals on the market with competitive rates.

You may currently be on your lender’s default tariff, so if your mortgage deal is coming to an end, now is a good time to shop around for the best deal whilst mortgage rates are so low.

Here are some reasons why:

Low interest rates

Interest rates remain at the historic low of 0.1%, where they have been since the Bank of England made two emergency cuts at the start of the coronavirus pandemic in March 2020.

On June 24^th, the Bank’s committee voted unanimously to keep them at this rate. This is creating intense competition between lenders so there is a wider range of deals available for those who are in a position review their mortgage.

Wide range of mortgages available

New deals are coming on the market all the time and if you’re not locked in to a fixed or discount rate deal with an early repayment charge, it might be worth your while changing lenders (remortgaging) at any time.

Use lockdown savings

Many borrowers are using the money that they saved throughout lockdown to make overpayments on their mortgage (check the terms and conditions of your mortgage first). Households who have managed to earn the same during the pandemic but have not spent on commuting or going abroad for family holidays over the last 18 months, have managed to save considerably. This money could help you pay off your mortgage quicker and then apply for a new mortgage deal with subsequently lower monthly repayments.

There are a few things you need to do before shopping around for the best mortgage deal:

• Plan at least six months prior to your current mortgage deal expiring
• Check your current deal for early repayment charges and exit fees
• Find out how much you can borrow based on your current earnings and circumstances as these may have changed since you took your last mortgage out
• Get an up-to-date property valuation on your home. Prices have risen considerably over the last 12 months and you may have more equity in your home

With the sheer amount of mortgage deals on the market, it also means finding a lender who will accept will be harder, particularly if you’re self-employed. This is where working with a mortgage consultant will help you.

Contact us for a no obligation mortgage consultation today >>

Your home may be repossessed if you do not keep up with repayments on your mortgage.

We offer a comprehensive range of first charge mortgages from across the market, which lenders make available to mortgage intermediaries, for which we will be paid a procuration fee by the lender.