Previously, a UK home owner only needed to keep an eye on phone and power bills each month. But with the current housing market changes, homeowners or would-be homeowners are now forced to watch their monthly mortgage payments. This is why so many UK residents are switching to the next available re-mortgage plans, but is this worth it?
Lower Rates
Towards the close of the previous year (2013), homeowner enjoyed the lowest interest rates on re-mortgage plans. And the trend in low rates has been maintained even in the opening of 2015. These low rates are courtesy of the Government injecting some income into Lending schemes which gave banks the freedom to take rates lower for business and housing prices, especially for those with minimal monthly deposits.
On the other hand, speculative reports show that push on interest rate rise could be undergoing; so it is wise to take advantage of the low rates while they last.
Early Repayment Fee
Your lender may decide to charge you a repayment fee for switching to a re-mortgage deal. This will, especially apply to those who were on a fixed rate plan or a tracker deal period. However, if your deal period was already over when you made the re-mortgage decision, a repayment fee may not affect you.
Access to Money
A re-mortgage switch could help you draw down funds which can be used to settle other debts. Alternatively, the released money can be used for home improvement which will take your home value up. This to a lender is attractive and may win you a bigger loan due to appreciated home value. Take note though that release of money requires you to move to a bigger loan, and this on the short-term may work but could have serious implications in your future. As a tip, be realistic in how you make valuations.
No Legal Fee Involved
If you are worried that your new re-mortgage decision will affect the legal service fee, you need not be. All the legal work was initially taken care off when you made your first house purchase. Since a re-mortgage is just switching services, there is no need to start drafting new legal terms with your lender.
A re-mortgage could be the best decision you make with the current unpredictable housing market. There are speculations of a future rise in interest rates; so better be safe now than sorry later. As you do so, make sure you consider the full costs of switching to a re-mortgage deal.
Let us help you cut through the jargon and find the best re-mortgage deal for you - contact
Mortgage Advice Services today on 01332 257 087
Labels: fixed rate mortgages, independent mortgage advisers, mortgage advice, the re-mortgage process
