No, we’re not referring to equity release lending or lifetime mortgages (mortgages for people aged 55 and over) although you can find plenty of information on those via our news pages. We’re actually referring to the number of mortgages in the UK that are coming to the end of their product term.
According to Legal & General, there are 1.8 million fixed rate mortgages set to mature this year. MoneyWeek also reports that 3.6 million mortgages are up for renegotiation over the next three years, which equates to 41% of all outstanding home loans.
And given the way the market has moved over the last two years, it’s highly likely (if not a complete certainty) that those with mortgages set to mature are going to be moving from what would now be regarded as incredible rates to the rates of the day, which are less incredible than they once were.
This is also likely to mean a significant rate jump, as those on mortgage rates that may be as low as 1% are now likely to be facing an increase of around 3% if we look at what’s currently available.
However, what is certain is that those who fall onto their standard variable rate (SVR) are going to be even worse off. The solution? Remortgage.
A Guildford mortgage broker’s take
National reports suggest that broker searches for remortgaging products have increased by 34% since Q4 in 2024 – and our team of Guildford mortgage advisers have reported a similar surge in demand from those looking to remortgage.
So, if you’re one of the many who are coming to the end of their mortgage term and are wondering what to do, then here’s a five-point guide to get you ahead of the game.
1. Get a mortgage broker
As a mortgage broker in Guildford, we would say this – but it’s true. It’s also the most straightforward thing to do. Why worry about finding the best mortgage deals in the UK on a lender-by-lender basis when one meeting with a mortgage broker acts as a portal to a panel of lenders. Our existing clients don’t need to worry about what to do as they face the end of their term, as we let them know and start planning their next move well in advance. So, once we’ve secured you a mortgage, we’ll keep on top of your term for you.
2. Don’t do nothing
If you do insist on going it alone, then make sure you don’t ignore it. A lender may well be quite happy for you to fall onto the SVR, as it’s likely to be much higher than the best fixed-rate mortgage rates of the day. However, when your monthly repayments jump significantly you’ll wish you tackled it sooner. There’s no reason to find yourself on the SVR, so avoid it at all costs.
3. Don’t panic
Yes, mortgage rates are much higher than they were five years ago. But they’re also much lower than they were two years ago. Fixed mortgage deals that are less than four% do exist; it’s just a matter of finding them. Again, the benefits of a mortgage broker become clear here, as we will not only find them, but we’ll also find them from a variety of lenders, giving you more choice when it comes to picking the one that best suits you.
4. Keep your equity in mind
Rates may have increased over recent years, but your property wealth probably has, too. If that is the case, then it’s likely that your lending ratios have changed. Let’s say that your property’s value has increased by £100,000 since you last took out a mortgage. This means that your loan-to-value ratio will have improved, and that you’re likely to qualify for preferential rates. Your mortgage broker will be able to advise here.
5. Get ready
So, you need to remortgage. Whether you use a mortgage broker or not, you’ll need to start collating the documentation that will help you get the best mortgage deal. In our article entitled Signed, sealed and delivered, we cover the documentation required to apply for a new mortgage, so use it to get everything you need in place.
Need help with remortgaging? To speak with a mortgage broker in Guildford, contact our team of Surrey mortgage advisers by calling 01483 238280 or e-mailing info@complete-mortgages.co.uk.
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