Why You Shouldn't Wait Until Your Mortgage Deal Ends to Remortgage
When you take out a mortgage, you typically lock into an initial fixed rate for two, five, or sometimes ten years. During this time, you have complete peace of mind knowing exactly what your monthly repayments will be. But what happens when that deal comes to an end?
Far too many homeowners wait until their current deal expires before looking for a new one. Here is why acting early is the smartest financial move you can make.
The Danger of the Standard Variable Rate (SVR): If your fixed-rate period ends and you haven't arranged a new product, your lender will automatically move you onto their Standard Variable Rate (SVR). The SVR is set by the lender and is almost always significantly higher than the fixed rates available on the market. Falling onto the SVR can instantly increase your monthly outgoings by hundreds of pounds.
The Six-Month Window: Did you know that most mortgage lenders allow you to secure a new rate up to six months before your current deal expires? Locking in a rate early provides a vital safety net and protects against rate rises.
If you lock into a new fixed rate and the market interest rates go up over the next six months, you are completely protected. You have already secured your lower rate. You also get the benefit of flexibility if rates fall. If interest rates go down before your current deal ends, your can simply get your adviser (hopefully me 😉) cancel the rate you secured and apply for the new, cheaper rate instead. It is a win-win situation.
Searching the market for a new mortgage can be time-consuming.
An independent adviser like Key2 Financial will assess the whole market to find the best product for your specific circumstances, comparing the savings against any potential product fees to ensure it’s the most cost-effective route.
Don't let your mortgage deal expire unnoticed. If you are within six months of your rate ending, reach out to Key2 Financial today to start reviewing your options.