According to a market forecast this year, October is expected to experience the highest number of mortgage renewals, or remortgages. If these predictions are accurate then it will be a season that will see a lot of homeowners search the market for new, if promising, remortgage deals. Could this be the ideal time to reset expectations when hatching new financial plans?
Can I get a better, friendlier costing rate for my mortgage? The likelihood is an emphatic ‘yes’. If, like the majority, you are seeking a decent fix for five years against your mortgage, possibly even more*, there is ample choice on the market, which has become kinder to homeowners wishing to improve their rates. Sewing new financial plans in the current economy, against a sea of competitive mortgage rates, a customer can expect a surprisingly good time for opportunity.
Commonly, homeowners swap rates because their existing one is nearing its end. Yet, opportunities are abundant for those freed up to plan ahead. Remortgaging is, then, the freedom to resew financial plans for homeowners. Swapping could be beneficial because, for example, your property value has increased over time and, thus, your payments can be lowered. It could be that, on the other hand, pessimistic forecasting has brought doubt into the future of rates, making securing a new one a top priority. Or, possibly, you want better value.
Shyness in the market would be, following a near-consensus online, a missed financial opportunity. Shopping around now for competitive rates could open the doors, both figurative and literally, to property across the UK market. Only months back, a commentator writing for The Guardian observed how homeowners, specifically their finances, are freer from weighty loans. There is a sense of greater affordability out there – but it is uncertain how long that might last.
*Mortgages are fixed for a set term anywhere from 2, 3, 5 or 10 years per rate.
- remortgaging –
To replace one existing mortgage with another (against a property).