By Isle of Wight Observer
With interest rates and household bills on everyone’s minds lately, it’s no surprise that many home-owners are wondering is now a good time to remortgage? The short answer? It might be – but it depends on your situation.
What is remortgaging?
Remortgaging simply means switching your current mortgage to a new one – either with your existing lender or a different one. People remortgage for various reasons, such as to get a better interest rate, reduce their monthly payments, release some equity (taking out cash against the value of their home), or avoid going onto their lender’s standard variable rate, which is usually more expensive, or to pay for home improvements.
What’s going on with interest rates?
Over the last year or so, interest rates have been fluctuating, but they are finally starting to settle down a bit. The Bank of England hasn’t made any big changes recently, but there is talk that rates might go down later this year. As a result, some mortgage lenders have started offering more competitive fixed-rate deals, especially if there’s a good amount of equity in your home. So if your current mortgage deal is ending soon, or if you’re already on a higher variable rate, now could be a smart time to start looking around.
Don’t forget the legal side
When you remortgage, there’s some legal paperwork involved like checking your property’s title, making sure the new mortgage terms are in order, and paying off your old mortgage.
Some lenders offer free legal services as part of their remortgage deals, but these can be a bit basic.
Hiring your own solicitor gives you more control and can help things run more smoothly, especially if there are any complications.
If your mortgage deal is ending soon, or you’re not on a great rate, it’s definitely worth looking into. The mortgage market is starting to pick up again, and locking in a decent deal now could save you money and stress down the line.
If you would like Biscoes to assist with your remortgage please contact a member of our residential property team on 01983 533938, or our website at biscoesiow.co.uk.