07 May 2019
07 May 2019
Many homeowners and house buyers are wary of what would be the future of UK property and mortgage market with the threat of Brexit. Recently, the discussion has shifted from post-Brexit to the common question of "what if I remortgage in 2019?”
Should you remortgage your property in 2019? Of course, Yes. Why not? Now is the best time to consider remortgaging with mortgage rates at a ridiculously all-time low. As a result, smortgage.co.uk put this piece together to show you why you should remortgage your property in 2019 and the benefits of such remortgaging.
There are about 760,000 mortgages (as of March 2019) as a result of the ongoing Brexit negotiation in the UK according to UK Finance. Furthermore, more than 197,000 households are discovered to be looking for remortgaging for the first time. This figure represents about 12% increase in the figure obtained in the first half of last year. Thus, this gives mortgage brokers and advisors an opportunity to assist homeowners and potential borrowers the process of remortgaging. It also gives them a room to offer them with better mortgage rates and more options to select from.
Why then should you consider remortgaging? Well, the reasons are not far-fetched, and they include:
When people say they are looking for the best mortgage deals, what exactly do they mean?
You want another type of mortgage deal
The best mortgage deal is the one that fits your financial and personal requirements. Like these requirements, your tastes for a new mortgage can change at any time. For instance, you might want to make overpayments on your mortgage or switch to a longer fixed rate to secure your mortgage. Regardless of your opinion, you are looking for a new mortgage deal that will match the demands of the Brexit deal, if it eventually happens.
Your present mortgage deal is coming to an end
If you are already approaching the end of your current fixed-rate mortgage plan, then the best option is to consider remortgaging before you are transferred automatically to the Standard Variable Rate of your employ. This automatic transferred could cost you more money every month.
You Want to Borrow More Money
You will be able to release part of cash (equity) that you have built over the years if you remortgage your home. Whether you want to buy a new car or looking to fund your home improvements, remortgaging is one of the best ways to raise funds. Before increasing your debt, however, it is vital to hire the service of a professional mortgage advisor after carrying out your own research. If you have decided to remortgage in 2019, why not read our tips on getting the best compare remortgage deals in the UK?
Your Loan-to-Value Mortgage is high
One of the most vital points to consider during remortgaging is savings. This is even more important in the UK mortgage market as we now have increased set-up fees by lenders. While opting for a lower interest rate is a good idea, ensure that the cost of switching lenders is not up to the cost savings. This is to ask your lender the necessary info if there's any exit fees or related charges if and when you want to exit your present mortgage. Also, don't forget to consider the fees charged by your new lender.
Certainly, you will develop equity in your property with every mortgage repayment you make. This means that as years go by, the amount of equity in your property will increase as the total amount owed on your mortgages reduces. Having considered mortgaging on a high loan-to-value property, for example, remortgaging at a lower Loan-to-Value Ratio than the initial loan might be a better remortgaging option. This is rewarding and helpful as a reduction of the loan-to-value automatically minimizes the risk factor and consequently reduces the interest rate. The interesting thing about this is that it won't be noticeable, but you will surely end up with a reasonable financial asset that you can invest with.
When is the best time to apply for a Remortgage?
Talking to a professional mortgage advisor for mortgage advice is the first step before carrying out your personal research or applying for a remortgage. This is even more important if your tie-in period is close and you don't want to wait till this period before benefiting financially from remortgaging. Also, it is essential to keep in mind that an average remortgage could take between 1 and 2 months from the application to the completion phase. So, we recommend starting your remortgaging process today by contacting a competent and professional mortgage advisor here smortgage.co.uk.