Remortgage. Is now the right time for you?

It is now over 10 years since the Bank of England last raised interest rates. Could now be the best time to remortgage? With base rate at a historic low of 0.25%, some feel that the only way rate will go is up. Is it time to consider what a rate rise might mean for your mortgage?

A rise in rates will only effect you initially if you are on a variable rate mortgage and your lender decides to pass on the increase. Around a quarter of the United Kingdom’s mortgage holders pay the lenders standard variable rate (SVR). This could be that they have come to the end of a mortgage deal and did not take out a new deal. Sometimes your financial circumstances may have changed and your existing mortgage lender will not offer you a need deal. A typical standard variable rate is about4.5%. A typical fixed rate mortgage is usually below 2.00%.

Should I fix my mortgage rate?

Good fixed rates over two and five years are still available. Recent industry figures show that around 90% of new mortgage loans and remortgages were taken out as fixed rate deals. Some lenders are showing rates at below 1.50% but they often come with large arrangement fees or require a large deposit or equity in your home.

If you are nearing the end of your mortgage deal start looking at least four months beforehand. It can take several weeks to complete the remortgage agreement.

Using an independent financial adviser like Anstee & Co compare the whole of the market and offer unbiased financial advice. We will be able to show you the total cost of the borrowing including fees for your mortgage. The lowest rate might not always be the best one for you. 

How we can help with your remortgage.

To find out more about remortgaging visit our remortgage website.

We are independent financial adviser. We look at the whole of the market and offer unbiased mortgage advice. The first meeting is free of charge. We have offices in Kettering, Stamford and London. Our mortgage adviser make use of meeting rooms in Thrapston, Raunds, Corby, Wellingborough, Rushton, Kimbolton, Northampton and Towcester. Meetings can also be arranged at your home at a time convenient to you.

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.