According to data from the Council of Mortgage Lenders (now part of UK Finance), remortgaging was at record levels in 2017.  Over 41,000 mortgage borrowers found a new mortgage deal in October alone!  And, they believe this trend will continue into 2018.

Maybe this increase in remortgages is because more people are aware that you don’t have to wait to move house, or lend more money for home improvements, to review your mortgage options. 

Maybe this increase is because people who were on a fixed rate mortgage knew they would automatically go onto their lender’s Standard Variable Rate when the term ended, and took the opportunity to renegotiate or change lender. 

Maybe this increase is because people are aware that what was the correct mortgage deal for them when they started the mortgage could potentially not be the best option for them now.  

At Four Oaks Financial Services we recommend that you review your mortgage with your financial adviser every two years.  Mortgage products change and personal circumstances change and you could potentially save money by remortgaging. 

Interest rates have started to rise, albeit the first increase in base rate for 10 years was just from 0.25% to 0.5% and the Bank of England have said that any rise in rates is likely to be small and gradual.  Nonetheless this is likely to give rise to concerns that further increases will follow. 

43% of borrowers have a variable or tracker rate mortgage deal so they started to see their monthly mortgage payments rise from December.  The 57% of borrowers who are on fixed rate mortgage deals will not be affected until their current mortgage deal ends. 

Remortgaging doesn’t necessarily mean switching to a new lender.  Often it is possible for you to negotiate a new rate with your current lender however, this can be time consuming. It’s therefore a good idea to speak to a financial adviser who can also research the deals on offer from many different lenders.  A trained Financial Adviser offering local financial advice will also be able to point out the pitfalls, penalties and lender fees and recommend the most appropriate mortgage for your circumstances. 

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. 

At Four Oaks Financial Services, our initial consultation is at our cost and we can quickly establish whether it is worth you considering switching your mortgage. 

Contact our Client Liaison Team on 01543 401029.