Should I remortgage now to save money?

Should I remortgage now to save money?

With sky-high inflation and the cost of living crisis you might be asking should I remortgage now to save money? If you remortgage onto a better rate you may be able to save on your mortgage payments. And if you choose a fixed deal you’ll be protected against future interest rate rises that might be around the corner.

However there are some things you’ll need to think about before taking the plunge. That’s why we’ve put this article together so you’re fully informed.

Should I remortgage now: Will rising interest rates affect my mortgage?

The Bank of England has raised the base rate of interest five times since December, taking it from 0.1% to 1.25%. Whether this affects you or not will depend on the type of mortgage you’re on. So if you’re on a tracker mortgage and the base rate goes up your monthly payments will increase automatically. And if you’re currently on your lender’s standard variable rate (SVR) the rate you’re on can change at the lender’s discretion. This means they could pass on the full increase, some of it, none of it – or more if they want. But if you’re on a fixed rate mortgage your repayments won’t change until the end of your deal.

How can I protect myself from rises in interest rates?

If you’re on a tracker mortgage or your lender’s SVR and you opt to remortgage onto a fixed rate deal, you’ll pay a fixed rate for a set period of time. This is usually two, three or five years but it can be longer. And with many experts predicting the base rate will rise further this year you might feel like now is the right time to remortgage.

However as interest rates have increased over the last six months or so the available rates on fixed rate mortgages have been increasing too. So if you do want to remortgage it’s a good idea to move quickly. And when it comes to remortgaging, using an expert adviser is one way to speed up the process. That’s because they’ll be able to talk you through your remortgage deal options and answer all your questions. So you’ll be able to make a quick decision if you want to go ahead.

How much could I save on my repayments?

We’re all looking for ways to reduce our outgoings and many of us are asking should I remortgage now to save money? But how much could you save? This will depend on your circumstances and come down to things like the rate you’re on now and the new rate you’re able to get. And you’ll need to include any costs too like if you’ll need to pay an early repayment charge. But the good news is you don’t need to start going through the figures yourself. That’s because this is where an expert adviser can help you. Your adviser will explain what remortgage deals are available to you and talk through any savings and costs.

I’m on a fixed rate now, what should I do?

If you’re on a fixed rate deal and it’s due to end in the next few months it’s a good idea to start looking for a new deal now. One benefit is that you’ll be able to lock in a rate that could disappear. But also, when your mortgage deal ends you’ll be moved onto your lender’s standard variable rate. And this might mean your mortgage payments could increase. However if you give yourself a bit of extra time it’s more likely that you’ll be able to move straight from your current deal to your new one and avoid that happening.

If you want to find out more about remortgaging, then speak to one of our remortgage specialists for a chat on 07808 645108 or click here to arrange a call back.

You may have to pay an early repayment charge to your existing lender if you remortgage.