COVID-19 has had a dramatic effect on all sectors and the mortgage market in particular. However, with numerous products withdrawn (it has been reported that approximately 900
products were withdrawn at the beginning of the Coronavirus pandemic), mortgage breaks taken up by thousands (if not millions) of homeowners, there is still an air of uncertainty as we navigate through 2021.
However, it is not all doom and gloom, especially if you’re looking to remortgage.
Of course, it is expected that some lending criteria have changed during the pandemic; however, now, this does include some of the best deals around.
If your current mortgage deal is coming to an end or if you would like to take equity out of your home, then now could be the perfect time to remortgage – consolidating your current commitments and helping you to reorganise your finances.
What happens when you remortgage?
Remortgaging can be the best way to find a better mortgage deal. Providing you with an opportunity to reduce your monthly repayments and even pay off your mortgage earlier than anticipated.
Remortgaging can also be used as an option for releasing equity from your property and even help support debt consolidation.
Today, you will find mortgage rates are at an all-time low, so remortgaging now can mean you will pay less interest on your overall mortgage loan. Providing savvy borrowers with an excellent opportunity to switch and save.
You also don’t have to change lenders. Sticking with your current lender and simply changing or moving to a new mortgage deal is known as a product transfer.
If you’re on the government’s furlough scheme, this is not a problem for lenders, as most will accept remortgaging applications based on reviewed policies and evidence. They will also not carry out any affordability checks on existing customers looking to remortgage (on a
like-for-like basis), placing you in a win-win situation.
(Note: If you are applying to another lender, your finances will be assessed).
It is also recommended that you find the right lender as many have capped loan to value rates at 60%! Yes, providing you with lower interest rates, but on the other hand, requiring buyers to find a 40% deposit or for remortgaging means only 60% of the property’s value can be taken.
(To find out about how these changes affect buying a property at auction, make sure to check out our latest post HERE).
If your mortgage deal ends soon, most lenders still offer great product transfer deals, especially for existing customers. At Mortgage Assistant, we can help you find the right mortgage advisor Chester who can help arrange remortgage deals, advising you on the best options to suit your specifications and requirements.
(Note: If incomes have been affected due to the pandemic, this should not prevent you from transferring to a new deal with your existing lender, and it’s advised you speak to your mortgage advisor for further information and details.)
If your mortgage is ending in 6 months – trust us, now is a great time to look at your mortgage product transfer options, especially as some lenders are currently allowing you to apply for such deals in advance. This allows you to take advantage of the current low rates available to the market. It’s also advisable for customers to apply for new mortgage deals earlier as banks and lenders are operating longer lead times due to the fallout from the pandemic and the pressures placed on the mortgage market.
Do you want to consolidate your credit commitments – now could be the ideal time for you to reduce your monthly financial commitments by consolidating credit into your mortgage. It’s important to work with your mortgage broker in Chester in this area and ensure that you’re getting the best value for money (balance transfer deals and looking at personal loans may be more suitable alternatives in some instances).
If you want to change your mortgage term – this is possible even if you’re only midway through an existing deal. Carried out as part of a remortgage or product transfer, if you want to look at how you can reduce your monthly outgoings speak to a professional mortgage advisor in Chester today.
If you’re experiencing financial difficulty, it’s important to speak to your existing lender to discuss your options as soon as this happens. Professional mortgage advisors can help you better understand your options and talk you through if consolidating your commitments is a viable option.
Why you should remortgage
- Save money
- Secure a better deal
- Release equity – whether to pay for an extension, new windows, etc., remortgaging can help fund these activities and more, increasing the value of your property as well as providing you with more space!
- Can support additional house purchases
- Debt consolidation
- Pay more off your mortgage – paying off your mortgage quicker.
To help you find the best remortgage deals on the market, Mortgage Assistant can put you in contact with the right mortgage broker in Chester for you.
Helping to provide remortgage advice and clarity in an often-complicated market, use our Find an Advisor tool today.
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