Time to Remortgage? Our dedicated team is here to help!
Most homeowners and investment buyers with mortgages are tied into a fixed rate period with their lenders. This is a period of time, usually somewhere between 2 and 5 years where a lender guarantees that the interest level applicable to you mortgage will not change. But what happens when that period comes to an end?
Unless the end of the fixed rate period coincides with the end of your mortgage term, most people will look to secure their next fixed rate deal so they can benefit from the certainty of knowing what their mortgage payments will be for the next 2 to 5 years. If you do not take this step, the interest rate applicable to your mortgage will revert to your lender’s Standard Variable Rate.
In the days of the recent past with low interest rates there was less urgency to securing your next mortgage deal as the change to standard variable rate rarely resulted in a large hike. Currently, however, with the Bank of England’s base rate having risen from 0.1% in February 2020 to 5.25% in August 2023 (where it remains), the flip to standard variable rate can be unaffordable for homeowners and investors alike.
While the older among us may not find 5.25% particularly shocking when the rate in 1980 went up to 17% and in 1989 it was 14.88% it still makes good sense to secure a new mortgage deal to coincide with the end of your old one.
So, how can BPE Solicitors help?
Simply!
- We are available at all times and offer a direct service to help speed your matter which is am important to us as it is to you.
- We engage with lenders and brokers and have a great understanding of different lenders needs to expedite matters.
- We are on the panels! Without this most firms cannot act on for lenders on purchases and re-mortgages and we pride ourselves on protecting this and keeping up to date to offer this key service.
It may be that the best deal for you is with your current lender, in which case a small amount of paperwork with your current lender can simply move you across to your new deal (however, we of course, recommend that you seek advice from an Independent Financial Advisor before you make this decision). But if a better deal can be found with a different lender you may want to change to them – this process is known as remortgaging. Details of the stages involved in remortgaging can be found here.
When you decide, with the help of your IFA, which lender you are proceeding with, you will be asked which solicitors you wish to use. This is where BPE can assist. Our experienced team of solicitors and conveyancers can guide you through the remortgage process and ensure that you move across to your new mortgage deal as quickly as possible. It is important to remember you will not experience the benefit of your new interest rate until the formal completion of the remortgage, so speed can be of the essence.
In some cases your new lender may offer you a package which includes free or low cost legals. We would urge you to think carefully about using this package as while it may seem a good deal it may not always be. We have inserted below some pros and cons about who it is best to instruct:
Click here to see why you should choose BPE over low cost/ free legals.
So while a free or low costs legal package may look attractive we would always recommend that you think carefully before taking this option. Delays may result in you needing to make mortgage payments at your outgoing lender’s Standard Variable Rate and it could only take one payment at that level to write off the benefits of a free or low costs legal package.
Please contact us for more information regarding our re-mortgage services as soon as you start considering new mortgage deals. We are on most lender panels – a full list can be found here and if you don’t find your proposed lender here, please let us know. We can usually make an application to new panels very quickly.
To find out more about our Residential Property services, please email bpe@bpe.co.uk or call 01242 224433.
These notes have been prepared for the purpose of articles only. They should not be regarded as a substitute for taking legal advice.
