UK home-owners MUST REMORTGAGE NOW to escape the impact of crazy new EU rules.

As a mortgage-holder you are strongly advised to act now and remortgage before the new EU Mortgage Directive comes into force. The date for its introduction is March 2016, but banks may start to introduce changes from September this year.

Mad but true - under the new directive when trying to remortgage to a lower rate you may be told no you can’t afford, this is due to stress tests which are carried out at much higher rates. This could mean you are left stranded on your lender’s potentially more expensive SVR.

You could fail an affordability check to move to a lower rate and save money, only to end up on your lender’s higher SVR. This actually means you end up paying more, and exactly how is this going to help?

At present there is a ruling to allow remortgaging home-owners to bypass the rule on affordability checks. Remortgaging is allowed providing there is no additional borrowing, once the directive is inforce this will no longer be the case.

In effect we could start to see many more mortgage prisoners in the UK, and you need ensure you are not one of them.

When interest rates do eventually climb, what will happen to those stuck on their lender's variable rate linked to interest rates unable to remortgage?

Financial hardship could become common place for many mortgage-holders who fail affordability checks.

It is therefore a race against time to check you are on the right deal. If you’re not you should remortgage to a better rate NOW, if you leave it too long you could be left unable to act.

For a review of your current deal against the entire market and to switch to a cheaper rate offer, call an adviser at independent ‘whole of market’ broker Deal Direct.

We are here to help you switch to a lower rate to save you money on your home. 

For help and advice call us on 0800 048 8828.