Many people choose to remortgage at the end of any given fixed rate tie in period or on the end of a special deal. In most circumstances, if you do not remortgage then you will revert to your lender’s standard variable rate, which may be much higher than the rate you were previously on during your deal period.
It may suit some borrowers to revert to the standard rate with no tie ins, for example if you are thinking of moving home shortly or are perhaps unsure of the shorter term plans. Sticking with the variable rate allows for a greater degree of flexibility as there are often no early repayment charges involved if you switch lender or pay off your mortgage in full. It is prudent though, that if you have no plans to move then you should consider what alternative deals are available to you. Most lenders are happy to offer existing clients a new special rate at the end of a fixed rate period as they are usually keen to keep your business. Loyalty, however, does not necessarily always pay off and neither is it always rewarded.
ESPC mortgages advice is to always begin the process of checking remortgage deals around 3 months before the end of your existing deal. In the first instance, you should always check with your existing lender as to what they can offer you. This will give you a starting point to make comparisons against. Once you know what deal you can get you can speak to one of ESPC’s mortgage advisers for more tailored advice to find the ideal solution.
It may be the case that your new mortgage will be different from your existing mortgage as you may wish to alter the loan size or term or perhaps release some capital for home improvements. Not all lenders will be prepared to lend you on the original basis of the loan, particularly if your circumstances have changed.
As an independent financial adviser ESPC Mortgages can help with all aspects of understanding your budget, applying for a mortgage and dealing with relevant insurance requirements. You can pop in for a no obligation chat with one of the advisors at the Edinburgh showroom or call on 0131 620 8680.