Recent estimates suggest that as many as one million borrowers have lapsed or will lapse onto their lender’s expensive default mortgage rate this year. It makes sound financial sense to make sure you are on the most competitive deal for your circumstances.
Inertia doesn’t pay
If your current tracker, fixed rate, or discount mortgage deal has ended, or will end this year, you may find you’re automatically switched onto your lender’s Standard Variable Rate (SVR) and could be paying way over the odds, perhaps without even realising. SVRs do not normally offer the most competitive rates and with SVRs usually linked to a percentage above the bank’s base rate, the rate can rise and fall, making anyone on an SVR vulnerable to interest rate rises in future.
Take advantage of record low mortgage rates
After two Bank of England rate cuts brought the Base Rate down to 0.1% earlier this year, mortgage rates have remained at record low levels, so it makes sense to shop around to see if you can get a better, more cost-effective mortgage deal.
It can take a couple of months to complete the remortgage process, so it makes sense to act sooner rather than later. Don’t worry if you’re currently locked into a mortgage deal that has exit charges; you don’t have to wait until it has come to an end, as we can help you find a deal before your lock-in period finishes.
Good advice pays
Remortgaging won’t be right for everyone, but we can advise you on whether it’s a suitable option for you, explaining the costs and any potential implications along the way. In a complex environment, getting good advice can really pay – so get in touch and we’ll guide you through the process.
🚨 Data accurate as of the date of publication – 16.11.2020.
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Planning – Essentially Mortgages Q4 2020