Why is now the time to remortgage to a fixed rate deal?
Once again market predictions are for an interest rate rise in mid-2016. A rate increase is likely to impact those home-owners sitting on their lender’s SVR the most. As the bank rate rises so will lenders’ SVRs, and so home-owners should really start to think about moving to a fixed rate.
It is doubly important to start making remortgage enquiries now, as in March next year transitional arrangements for remortgaging home-owners will end, and applications will be assessed as new loans.
This means if you achieved a mortgage offer a few years ago on a low rate, you might struggle to switch to a new deal if your income cannot support repayments set with rates of 5% to 7%.
From March all applications will be subject to affordability checks and stress tests. For some this could leave them trapped on their current lender’s offer, even if they want to switch to a lower rate cheaper deal this will not be possible unless they can afford re-payments with rates set higher.
If you want to avoid being trapped on an SVR as remortgage criteria tightens, you could lock yourself into a low rate fixed remortgage now.
To find out what is available in the market at your equity level call us at Deal Direct for a ‘whole of market’ search.
Speak to an adviser on 0800 048 8828 and let us switch you to a cheaper mortgage to save money.
Call Deal Direct today for advice and a competitive quote.
