Why now might be the time to remortgage?
With mortgage base rates increasing from 0.75% to a 13-year high of 1% could now be a good time to look at remortgaging your property?
Reasons to remortgage
There are several reasons why clients choose to remortgage their homes, the majority of these would save money in the process.
- To obtain a better mortgage rate
- Your current mortgage deal is coming to an end
- Borrowing money for home improvements
- To consolidate debt
- Changes in circumstances e.g. Divorce
Interest rates set to rise
The Bank of England has recently commented that it expects inflation to hit 9% and perhaps reach 10.25% by the end of the year, this could signify further interest rate rises so now might be the best time to remortgage to secure a lower interest rate.
“The marketplace is still buoyant and we are working on lots of property exchanges this spring, but buyers might find it harder and more expensive to get a mortgage in the not too distant future,” said conveyancing solicitor Michelle Ong.
“Changes in mortgage rates and the rising cost of living will inevitably have an impact on the housing market. First time buyers could feel the pinch with rising rents as they try and save to get on the property market, higher interest rates and lending criteria toughened.”
At Pearson Solicitors we work with many first-time buyers and finding a fixed deal from a recommended mortgage provider now could help mitigate any future interest rate rises.
“We work with mortgage brokers to help buyers obtain the right mortgage for them in terms of duration and fixed-rate length and ensure they get the best deal around,” said Michelle.
However, while the remortgaging concept is relatively simple, the legalities can be complex, sometimes we are dealing with properties that may have onerous covenants or there may be other loans or other restrictions secured against the property. It is necessary to complete all the legal steps before the remortgage can go ahead.
How can we help
At Pearson Solicitors, we can act for you and your lender in the majority of remortgaging transactions and make sure all the legal aspects are handled correctly. If interest rates are worrying you then it would be wise to look at remortgaging.
Contact Pearson residential conveyancing solicitors on 0161 785 3500 or firstname.lastname@example.orgSubscribe to our newsletter
Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.
This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.