2022 has certainly go off to a challenging start. Everything seems to cost more and with the latest rise in interest rates, this trend looks set to continue. Now is the time to take control of your finances and this includes your mortgage.
When does your current term come to an end?
What are your options?
What happens if you do nothing?
With over 20 years of experience Mell Ding, Director of Anglian Financial Services, is on hand to help you through the maze.
You may have been a homeowner for a number of years and your fixed rate deal is due to end soon. If you do nothing, your mortgage will revert to your current lenders SVR - Standard variable rate - It’s important to understand what this could mean for you financially, and what you should do about it. If you are unsure when your current Fixed term comes to an end, give Mell a call 07918275037 she will be able to help you find out.
You may have fixed your rate when you bought your current house five years ago and a lot could have changed since then, particularly with the Covid Pandemic. Your work situation may have changed - perhaps a new job - and the mortgage market has certainly changed. The ending of your fixed rate mortgage could be an opportunity for a financial spring-clean, as Mell may be able to help you switch to an even better deal.
What are my options when my fixed rate mortgage ends?
You face a simple choice if your fixed-rate mortgage deal is ending soon:
Do nothing – in which case your lender will move you onto the SVR mortgage –
Remortgage to a new deal.
What happens if I stay with my current lender?
This interest rate on an Standard variable rate mortgage will in most cases be higher than your current fixed rate.
Your existing lender will often write to you and offer you a choice of new products. These would be deals specific to themselves and may not be competitive compared to other lenders. Mell has access to a panel of over 90 lenders she can use to source the absolute best deal/rate for you, and she often has rates that are unique to Anglian Financial Services and not available by going direct to the lender. If you do nothing you will revert to their follow-on rate, which will be a variable rate, either Standard Variable Rate or a tracker; this will see your monthly payment increase. If you stay with your existing lender, you cannot normally lock in a new rate until 3 months before your rate ends, delaying the time in securing your new rate.
The SVR can also change at any time, at your lender’s discretion. Various factors can cause it to rise, including changes to the Bank of England base rate, but it’s important to remember that the lender can increase it whenever they wish, and don’t need to give a reason.
What happens if I decide to remortgage?
If you re-mortgage you can secure a new rate 6 months before your current deal ends, meaning you would be protected from interest rate increase for 6 months before your current deal ends. Mell can source 90 lenders to get you the best deal. Many lenders offer free valuations, free legal costs, and cash back. Many of Mell's clients use this opportunity for a full review, with a view to reducing their term, borrowing more for home improvements, and even debt consolidation.
Your lender will want to know if your circumstances have changed as this could affect your affordability assessment and credit score. Common changes that may affect your mortgage prospects include having children, taking on new debts, or becoming self-employed.
What should I do next?
For a free, comprehensive review, I would strongly recommend speaking to Mell, not only is she a lovely person, she really is excellent at her job and is well respected within the industry.
How much does this cost
Its cost you a phone call, or if you send me a message I can ask Mell to ring you, or you can ring or message Mell directly on 07918 275037
You may have to pay an early repayment charge to your existing lender if you remortgage. Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
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