It’s been five years since the pandemic, and just over two years since Liz Truss was in office as Prime Minister. But why are those two things significant to people remortgaging?
The five-year fixed rate mortgage
Covid-19 had a serious and unforgettable impact on the whole world, and one of the things affected was mortgage rates. If you fixed your mortgage rate in 2020 you most likely managed to secure a fantastic deal. However, if you’re remortgaging you are now likely facing a rate increase. The question is, how can we deal with that and help you with affordability?
- Have a conversation with your mortgage broker as soon as possible – say nine months before your renewal is due
- Look at your finances - your spending, and figure out what is a cost and what is a necessary expense
- Reduce the costs and manage the expenses by cutting out or cutting down on those expensive subscriptions, treats and habits.
It might be time to tighten the belt a bit over the next few years, but a whole of market mortgage broker has tools and knowhow that will help you. For example, one of the ways MK Mortgages can help is by not charging you a broker fee*.
The two-year fixed rate mortgage
Without making any political comment on Liz Truss’ term as PM, that also had an impact on mortgage rates, and those who took a fixed rate back then will find they are potentially about to get a better deal when they remortgage.
That means a reduction in monthly outgoings and a bit of ‘spare’ money every month. Now, before you think about absorbing that into your usual household finances, think about whether you can afford to overpay your mortgage for a bit longer, or reduce the term by keeping monthly repayments the same. This makes for greater savings in the longer term…
Perhaps this would also be a good time to review your personal insurance and make sure your home is fully protected by life insurance, income protection and critical illness cover. Or even engage a financial advisor to talk about pensions and investments.
Are you remortgaging soon?
Whether you’re coming off a five-year or a two-year fixed rate mortgage, you are likely to see a significant change in your monthly outgoings, one way or the other. If you’re due to remortgage in the next few months, or even this year, please get in touch for a fee-free review and mortgage consultation.
It costs nothing* to arm yourself with information, a mortgage in principal or an approved mortgage deal, with MK Mortgages.
*MK Mortgages does not charge you for any mortgage advice or arrangements, as the lender fee covers all costs.
