Mortgage rates are now at record low levels, following two Bank of England rate cuts in March to bring the base rate down to 0.1%. You may have benefitted to some extent already if you are on a tracker, discounted or variable rate mortgage, but borrowers whose mortgage deal is nearing its end, or those currently on an uncompetitive standard variable rate (SVR), should review their situation as there are some very competitive products on the market, with potential savings to be had.
No time to waste
In such a fast-changing environment, those who are considering remortgaging in the next few months would be well advised to assess their options now. Some lenders, particularly more specialist mortgage providers, have increased rates to protect their position.
Lenders are adapting
Lenders’ contact teams have been under pressure with borrowers requesting mortgage payment holidays. Many purchases have not been able to complete due to the lockdown and in addition, the processing of new mortgage applications has faced operational constraints, such as an inability to do physical valuations. However, lenders have started to adjust their processes to overcome these problems, for example by using automated valuations.
Reduced choice of products
The number of products available on the mortgage market has reduced over recent weeks, particularly those in the higher loan-to-value range. Despite the reduction in products there are still competitive deals available for those wanting to take advantage of the potential savings. Using a mortgage adviser with expert insight and knowledge of the market is key. An adviser will also know which lenders can use automated valuations and will be aware of processing times.
Lighthouse will work with you to find a lender with a remortgage solution to lower your costs and give you greater disposable income. Or, if you are looking to make alterations to your property, or perhaps release some equity, our specialists will explore the options available to you. These may include remortgages, further advances, bridging loans and secured loans.
Your home may be repossessed if you do not keep up repayments on your mortgage.