by Mike Bowcock, Mortgage Advice Bureau
Clarity on what you need to be doing about your mortgage in the current economic climate:
Interest rates – We’ve had 7 Bank of England rates rises in 10 months. That’s almost a rate increase every 1.5 months.
If you are due to remortgage within the next 6 months – it might be an idea to pull your mortgage paperwork out from the “documents” draw…Probably buried under the instruction manual for the cooker and TV.
Please review your mortgage at least 6 months early. Workout what the implications are, is it highly likely your payments are going up. This is your chance to make material changes to your mortgage if it helps you mitigate the impact on your life style and your needs.
I can then look to reserve a new deal 6 months early. Often by remortgaging you can secure a mortgage offer for 6 months. This reserves the interest rate. Some lenders are also offering Product Switches to existing customers 6 months early, though the majority tend to only allow this within 3 months.
By securing a remortgage offer 6 months early you are not legally bound to complete the transaction. So if interest rates do in fact fall, or if your lender offers a preferential rate during that period you still have the chance to change.
However, going by the predictions of further rate rises, it’s more than likely to save you money if you act sooner than later.
So if you are due to remortgage soon? Now more than ever its important to speak to a professional to discuss your mortgage.
As a Mortgage and Protection Broker I have access to 90 lenders and 12,000 products – we have preferential rates as a broker that your high street lenders don’t have, so if you need advice – please feel free to drop me a message on the following:
Email: Mike.bowcock@mab.org.uk
My website: www.mortgageadvicebureau.com/mortgage-advisers/mike-bowcock
Contact number: 07737409934
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
