What Does The Current Political Situation In The UK Mean For Re-Mortgages?

 
The current climate in the UK has many people wondering whether the time to re-mortgage is now – there is low inflation, slowing world growth, oil prices have fallen, there is the refugee crisis that continues to affect Europe and many other things are happening. So when is the best time to re-mortgage? The answer is if you are going to re-mortgage the time to do it is now. Analysts have predicted that interest rates will rise in about two years. That means that if you take out a re-mortgage now you will enjoy lower rates for a couple of years before your lender puts you on a fixed variable rate which is higher.

Another reason why you should re-mortgage is the fact that you will avoid a new EU rule that is coming shortly that makes it that much harder for people to re-mortgage. The rule says that individuals should be stress tested to find out if they can pay their loans. What makes this rule a bit tough is that they are not testing whether you can pay at the current rate – they are testing whether you can pay should rates go up to 6% or 7%. This is something that many individuals are not able to pay.

When this rule comes into effect the other thing that may happen is that fewer people will be interested in taking out new mortgages which will lead to lower prices. If you feel you can stand the test then it is advisable that you stick it out until the rules come round and then get a mortgage at a lower rate. Otherwise, if you cannot survive a stress test then the best time to get a re-mortgage is now.

As you can see, it isn’t very easy to know whether or not the time to re-mortgage is now. That is why it is necessary to use a renowned firm like Mortgage Advice Services. The have been helping individuals with financial decisions for many years and they can definitely help you decide whether the best time to re-mortgage is now. Their consultants are all highly trained in financial matters. Their job is to help clients with their finances so that they can make the best use of the money and property that they have. They work with most of the lenders in the market so they know how to get you a re-mortgage that you can afford. You can find out more by calling them on 01332 257 087 or visiting their website, http://www.mortgageadviceservices.co.uk/

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