5 Reasons it’s the perfect time to remortgage
As we enter our fifth week of 'lockdown', the coronavirus continues to play havoc with people's lives - and not just their health. The economy has already taken a huge hit and experts are expecting the effects of the last couple of months to be felt for a long time still to come. It's not all bad news however, and in fact many people are taking advantage of the current economic climate to make some real savings.
In this post, we'll be sharing 5 reasons, why you might want to make the best of a bad situation and remortgage...
1) Interest rates are at an all time low
The Bank of England have reduced interest rates to just 0.1%, which is the lowest they've ever been. This means it's the perfect time to move to a fixed rate if you can so that you can secure longterm lower rates on your mortgage.
2) Equity release
If the value of your home is greater than the amount of your outstanding mortgage then now could be the perfect time to secure a low rate and release some of your equity to support your household finances during these very difficult times.
3) Mortgage choices are more limited
A number of lenders have withdrawn products over the last few weeks which means the range of mortgages currently available is much smaller. In fact, research from Moneyfacts revealed recently that the number of mortgage products available in the UK had reduced by more than half from 5,222 to 2,438.
To avoid missing out on deals which may also be withdrawn in the coming months, it's a good idea to act now if you're looking to secure a better rate on your mortgage.
4) If you bought your home with a small deposit
If your current mortgage deal is due to run out soon and you originally bought your home with a small deposit, you could be in for a shock when your lender moves you to their standard variable rate. There's a good chance that you'll see a significant increase to your monthly payments.
By remortgaging now, you may be able to assure a lower longterm rate.
5) It could make a real different if you're currently experiencing financial difficulties
Many people are facing some serious money worries right now, with businesses closing and employees being furloughed or even made redundant. If your own finances have taken a hit, then there couldn't be a better time to reduce your monthly mortgage payment. After all, for most of us, this is the biggest monthly outgoing that we have.
We're here to help
Here at BB Mortgages, we're staying on top of all the current changes in the mortgage industry and we'd love to help you to take the stress out of remortgaging - and find you the best rate possible of course!
We offer free consultation calls where you can chat with one of our expert advisers about what options are available for you. And the best part? Everything can be done online! We can verify all your documentation without the need to see you in person, so it really couldn't be easier!