EThere are many reasons to consider a re-mortgage especially if you are currently on the standard variable rate (SVR) but you should remain cautious as this is not always the correct action to take. Always seek professional independent advice as to the best way forward for yourself as your current plan may well have penalties.
The most popular re-mortgage reasons are listed below.
Securing a better rate of interest
Changing to a fixed deal to manage outgoings
Reducing current loans or credit cards
How a fixed rate can help you.
Expats are beginning to ask how a fixed deal can assist them now and in the future. Good news is there are still some very good deals available but who knows how long for.
A fixed rate mortgage will do exactly what it says on the tin! It fixes the payments you make to your lender for an initial period of time when the mortgage commences this is usually 2 – 5 years. These days mortgages change in structure frequently and it may be possible to get a longer period than 5 years, just ask what is available.
The benefit of a fixed rate deal is that it allows you and your family budget properly, safe in the knowledge that your mortgage payment will not increase for the fixed period. This is really useful if cash flow is tight or you don’t want the uncertainty of payments increasing without warning. This can be very comforting if you are an expat landlord running a business as you will know your fixed outgoings and your rental income.
If your budget is flexible and you have a surplus of funds each month you may be prepared to sacrifice the security of a fixed rate. You may select to gamble that rates will reduce and select a variable or tacker type mortgage. To be honest this is unlikely with today’s low interest market but if rates increase then your decision to fix will be a very good one indeed.
Need some guidance?
Can we be of assistance with your new mortgage/re-mortgage we have fully qualified independent advisers waiting to help you.