Should I remortgage?

Wednesday, 10th October, 2018
Guildford mortgage broker

This is a question that we hear time and time again. Thankfully, as a Guildford mortgage broker, it is one that we can answer.

However, before we get into the detail, it’s worth pointing out that recent data released through UK Finance revealed that 46,900 new homeowner remortgages were completed in July – over 23% more than the same period in 2017.

Furthermore, the value of renewed borrowing in July was £8.7 billion, which equates to more than 26% than in July 2017.

Is the UK a nation of intuitive homeowners, given how The Bank of England raised interest rates to 0.75% the following month? Or were these homeowners simply savvy and preparing themselves for an interest rate rise on the basis that, after years and years of low interest rates, it was only ever going to go up?

The simple fact is that there’s nothing like an interest rate rise – or even the threat of interest rates rising – to sharpen the focus of those with mortgages. After all, nobody wants to be caught short and faced with increased monthly mortgage payments that stretch the realms of affordability.

Recent interest rate rises do seem to have pushed the amount of remortgaging in the UK to a new high. However, regardless of interest rate rises – real, impending and possible – here are a number of reasons why you should consider remortgaging:

1. Beat further interest rises

As I’ve just covered, remortgaging – particularly when it comes to fixed rate mortgages – could protect you from interest rate rises and ensure that your outgoing monthly mortgage payments remain fixed in line with your monthly income (or at least fixed at a level you’re comfortable with). With many fixed rate mortgage options covering periods of up to 10 years, those who like to know where they are when it comes to mortgage payments my find this appealing. But remember, The Bank of England can also lower the interest rate at any time, too.

2. Avoid the SVR

If your current mortgage deal is about to end then you are likely to be switched over to the lender’s standard variable rate (SVR), which is highly likely to be higher than the one you’re on right now. Remortgaging is a great way of arranging a mortgage with a preferred rate and avoiding the SVR.

3. The equity in your property has grown

If the value of your property has increased since you took out a mortgage, then you may fall under a different loan to value bracket. If the loan to value ratio is smaller, then you might qualify for lower rates.

4. You’re tired of the inflexibility of the fixed mortgage

Whilst the fixed rate mortgage is great for those wanting security and consistency, they often come with a few negative aspects, too. For example, they tend to place limits on how much you can overpay – and penalise you if you pay more than is allowed each year. For example, if you were to receive an inheritance that would, in theory, pay off a significant amount of your mortgage, you may find yourself unable to do so without incurring fines. As part of the remortgaging process, you can wrap any windfalls into the new agreement, thus avoiding fees and arranging a new mortgage with a much smaller balance.

5. You are looking to borrow more, not less

People are always looking to move into bigger and more expensive properties. If that’s you, then there may be competitive mortgage deals available that enable you to borrow more capital without the monthly repayment being as big as you might think it would be.

As with these five reasons to remortgage and the countless others not covered here, the best way of understanding how you can benefit from remortgaging is to contact a mortgage broker. As an award-winning mortgage brokerage in Guildford that deals with remortgages on a daily basis, we can help. Simply contact the team on 01483 238280 or email info@complete-mortgages.co.uk.

By Mark Finnegan, Director at Complete Mortgages

How will the second interest rate rise affect my mortgage?

Tuesday, 7th August, 2018
mortgage broker guildford

After much speculation the second interest rate rise has happened.

As of now, the interest rate is 0.75% following only the second rise by the Bank of England in a decade. In fact, the last time the base rate sat around this region was in 2009 – so it’s no surprise that it’s heading on an upward trajectory.

But what everyone wants to know – particularly those on either a standard variable rate mortgage or a tracker mortgage – is how the interest rate rise affects mortgage repayments.

As per our last interest rate rise article, we’re going to keep it simple and say that the increase of 0.25%:

  1. Increases a £100,000 repayment-based tracker mortgage that matches any rise in the base rate by £12 a month
  2. Increases the monthly payments on a £200,000 mortgage loan by £25

For some, a rise of 0.25% may be manageable. For others, this increase and the possibility – or, if we’re honest about it, the probability – of others further down the line may be unsettling. On this basis, many will now be viewing the fixed rate mortgage as a safer bet given the consistency and stability it represents.

The good news is that there is still a raft of competitive fixed rate mortgages on the market.

Inevitably, in the wake of this week’s news, lenders across the nation will be looking to reflect the rate rise in their products, so those considering applying for a new mortgage or remortgaging will need to move relatively quickly if they are to agree a deal before any changes are implemented.

According to the Guardian, the number of people on a variable mortgage has fallen to 35% from 70% in 2001, so there is a clear move towards the security offered via fixed rate mortgages.

As a mortgage broker in Guildford, we’ve seen countless people switch to a fixed rate mortgage since the first interest rate rise in November and we now expect to experience a sharp rise in fixed rate mortgage applications in the coming weeks. And, as a Guildford mortgage broker with access to a comprehensive selection of mortgages that includes some of the most competitive deals on the market, our advice is don’t waste time.

If you’re either about to apply for a mortgage or are thinking of switching your mortgage from variable to fixed, then contact us on 01483 238280 or email info@complete-mortgages.co.uk.

By Mark Finnegan, Director at Complete Mortgages

Is time running out to get a competitive fixed rate mortgage?

Wednesday, 14th March, 2018
guildford mortgage adviser

Have you recently switched – or considered switching – your mortgage?

If you haven’t then you’re not alone. However, it may be worth considering your options as the debate around whether or not a new interest rate rise is imminent (many are saying it is) gains ground.

Whilst we don’t know when, exactly, or by how much, the Bank of England will increase interest rates, we do know that another two are planned before 2020.

If the first, relatively modest, rise of 0.25% wasn’t enough to get you thinking about fixed rate mortgages then the second one might.

As a Guildford Mortgage adviser, we’ve seen an influx of people from across Guildford and the southeast enquire about getting a fixed rate mortgage. Lenders have increased their mortgage rates since the last interest rate rise, however it’s not too late to get the ball rolling and apply for a fixed rate mortgage.

With access to some of the most competitive mortgage deals in the UK, Complete Mortgages is still seeing a number of options which, if you were to act now, would mean that you would still benefit from an excellent mortgage rate – and would be well placed to beat the rise (if and when it happens).

We’re seeing demand for three year fixed mortgages, five year fixed mortgages and even 10 year fixed mortgages increase significantly, which indicates that people are now beginning to think seriously about locking themselves into consistent monthly mortgage payments – something that we haven’t seen on this scale for a decade.

Of course, it’s all down to affordability.

Analysis by estate agent Savills suggested that a 1% rise in interest rates would add approximately £10bn to mortgage repayments in the UK – or an average of £930 a year (£77.50 per month) to the cost of servicing an average mortgage.

Depending on your financial circumstances, you may prefer to have the flexibility that comes with other products such as tracker mortgages. Either way, if the much-deliberated rise has made its way to the front of your mind then it’s certainly worth picking up the phone and calling a member of the Complete Mortgages team, who will be able to advise you on the right fixed mortgage for you.

In answer to the original question regarding whether or not time is running out to get a competitive fixed rate mortgage, I would say that there is still time – however I would also recommend that you don’t waste time.

Complete Mortgages also specialises in other mortgages over and above fixed or tracker mortgages. We can also arrange mortgages for self-employed people, mortgages for teachers, adverse credit mortgages, buy to let mortgages and limited company buy to let mortgages. Contact us on 01483 238280 or email info@complete-mortgages.co.uk for more information.

By Mark Finnegan, Director at Complete Mortgages

New Year, New Mortgage (but don’t leave it too late)

Monday, 29th January, 2018

Now that the New Year is fully underway, we’re urging our clients to start taking steps towards getting a new mortgage.

Whilst there are still a few lenders that are yet to increase their rates in line with the recent interest rate rise, the majority have already done so. Now, if you’re on a fixed rate mortgage then this won’t affect you.

However, if you’re currently on the standard variable rate (SVR) – or are about to enter the realms of the SVR – then this may be of interest.

1. Some lenders still haven’t raised their rates

For those who haven’t been thinking about their mortgage and what the interest rate rise means for them over the last few weeks, there’s still time to switch to a pre-interest rate rise mortgage deal – but you’d better be quick.

2. Beat the New Year rush

Whilst 2018 is in full swing, it can often take a few weeks before people start to really think about their next mortgage move. In fact, sometimes it’s February before the mortgage market really gets going. Put simply, if you act fast we can get you ‘mortgage-ready’ before everybody starts to want to do the same thing.

3. To rise or not to rise

There is already speculation that the next interest rate rise could come as early as May 2018, which means that if you haven’t already noticed the difference to your monthly mortgage repayments, then you may well do if the next interest rate rise comes as early as spring.

As a Guildford mortgage broker that has been in business since 2005, we’re still amazed to see the reaction on our clients’ faces when we explain how easy it is for them to remortgage. It’s even easier if you let a reputable mortgage adviser manage the process on your behalf.

So, if any of the three points raised here are relevant to you and you feel that you’re ready to remortgage – or at least you’re thinking about remortgaging in 2018 – then call us so that we can get your mortgage application underway.

Even if you aren’t looking to remortgage and simply need to arrange a mortgage, either for the first time or on a new property, then call us on 01483 238280 or email info@complete-mortgages.co.uk.

Remember, we also specialise in buy to let mortgages, commercial mortgages, limited company buy to let mortgages, equity release mortgages and adverse credit mortgages.

By Mark Finnegan, Director at Complete Mortgages