In a report, The Resolution Foundation estimated that 1.6 million fixed-rate mortgages are due to expire in 2024. Is yours one of them?
As the year gets underway, homeowners facing the end of their fixed-rate mortgage terms are presented with a critical decision - navigating the remortgage market to secure the best possible deal. The landscape of interest rates and mortgage products is ever-changing, and making the right choices can significantly impact your financial future.
Here, we explore the steps you can take to drive your 2024 remortgage deal in the right direction.
Start the remortgage process six months in advance
Thanks to the UK Mortgage Charter, your lender has an obligation to inform you that your current mortgage is coming to an end, well before its expiry date. This news should come as no surprise, and allows you adequate time to prepare your mortgage documents and book the necessary meetings required to get your remortgage underway. Remortgage customers can now look to apply for and lock in a new mortgage deal up to six months before their current deal is due to end, AND if a better deal becomes available before their new mortgage is about to start, then they can opt for that product instead.
Assess your financial goals
Consider your longer-term financial goals. Are you looking to reduce monthly payments, pay off your mortgage faster, or release equity for other investments? Understanding your financial objectives will guide your decision-making process and help you tailor your remortgage search to align with your specific needs.
Check your credit score
A healthy credit score is crucial when seeking favourable remortgage deals. You can check your current credit score easily online, and then look to work through and address any discrepancies or outstanding issues the credit rating report may flag. A higher credit score can open doors to better interest rates and more attractive remortgage offers.
Research current market trends
Stay informed about the current state of the mortgage market. Interest rates, economic conditions, and lender offerings can vary weekly in the current climate. Keeping abreast of market trends will empower you to make strategic decisions about when to apply for a remortgage deal and which lenders are currently offering the most competitive rates.
Explore your remortgage options
Remortgaging isn't a one-size-fits-all solution. An independent mortgage broker can help you investigate the numerous mortgage products currently on the market, across a fixed-rate, variable-rate, or tracker mortgage, depending on your circumstances. Each product comes with its own set of eligibility criteria and considerations. Choosing the right type of remortgage will depend on your financial situation, risk tolerance, and future plans.
Compare lenders and rates
Shopping around for the best remortgage deals is crucial. Lenders offer a variety of interest rates, terms, and fees. Don't settle for the first offer you receive; instead, your independent mortgage broker can gather quotes from multiple lenders and compare the overall cost of each deal. This process may require a few conversations, but the potential savings over the life of your mortgage make it well worthwhile doing so.
Consider additional costs
In addition to interest rates, be aware of any additional costs associated with remortgaging. These may include arrangement fees, legal fees, and valuation fees. Factor in these costs when comparing offers to ensure you have a comprehensive understanding of the overall financial impact.
Consult with an independent mortgage broker
Navigating the remortgage market can be complex, and enlisting the help of a professional mortgage broker can make the process smoother. Mortgage brokers have access to a wide range of lenders and can negotiate on your behalf to secure the most favourable terms. Their expertise can be invaluable in guiding you through the intricacies of the remortgage process.
Plan for the future
As you look to drive your 2024 remortgage deal in the right direction, consider your future plans. If you anticipate changes in your financial situation or lifestyle, choose a remortgage deal that provides flexibility. Being proactive and forward-thinking will ensure that your remortgage continues to meet your needs in the years to come.
Talk to Tony
If your fixed mortgage is due to expire in 2024, then talking to an independent mortgage adviser like Tony, 6-12 months before your fixed mortgage is due to end means that you can be fully prepared for what lies ahead and secure the best available rate for your circumstances.
Your home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. A fee may be charged for mortgage advice. The amount will depend on your circumstances.
Skyline Mortgage Consultants Limited is an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority. Skyline Mortgage Consultants LTD registered in England and Wales Number 8157062. Company Registered Office: Heathmans House, 19 Heathmans Road, London SW6 4TJ