Friday, 17 March 2017

Fixed rates are on the rise. Is it time to get yours?

5 five reasons to lock into an ultra-low fixed remortgage rate


Smart UK homeowners are rushing to take advantage of today’s rock bottom fixed remortgage rates.
The deals available are some of the cheapest ever. But they may not be around for long. It’s why thousands of savvy homeowners are scrambling to remortgage fast and cash in.

Figures by the Council of Mortgage Lenders show the number of people remortgaging in January soared by 46% over December 2016. And, 21% more homeowners chose to remortgage in 2016 than in 2015.

“Those who have not yet switched to a fixed-rate deal should act quickly,” says Sam Brodbeck, senior personal finance writer at The Telegraph. “Fixing your rate should be a matter of urgency.”
A survey by moneyfacts.co.uk shows that 31% of eligible homeowners are hoping to cash in on low interest rates in 2017 with a mortgage switch.

Remortgage rates have rarely been better

Are you looking to save money by remortgaging? There are strong political and economic reasons why remortgaging now makes sense. Opting for a fixed rate does too.
Here are 5 reasons why now’s a good time to grab an ultra-cheap fixed-rate deals.
  1. Lenders are offering historically low fixed rates. So it’s the perfect moment to capitalise on them. Remortgaging your home means you could save money by lowering your monthly outgoings. Or release equity. Or fund home improvements such as an extension or loft conversion.
  2. These deals are not going to be around forever. Some rates are already beginning to rise. Nobody knows how Brexit will impact the UK economy. But the Office for Budget Responsibility thinks inflation will rise above the Bank of England’s official 2% target by April. A cost of living rise might push it to hike its leading Bank Rate from its all-time low of 0.25%. Variable mortgage rates will increase then. Cheap fixed rate deals for new borrowers and remortgagors will shrink too.
  3. Political uncertainty means future wage growth and cost of living are out of your control. Remortgaging to fix your mortgage makes one part of your personal finances predictable. A fixed-rate mortgage means the interest rate you’ll pay is fixed for the period, whatever happens. It&squo;s why the popularity of longer fixed rate deals has surged.
  4. Lenders are offering historically low rates on 5- and 10-year fixed deals. But they’re starting to increase. These long fixes used to be unpopular with borrowers but not anymore. A lot of remortgagors see the security as a real plus now. Yes, there’s a risk that taking a longer-term fixed rate could see you paying over the odds if rates change. But, say independent experts moneyfacts.co.uk: “This is not a large risk in the current low rate environment.”
  5. If you’re thinking of remortgaging your home, the chances are you’ve got some equity in it and a lower loan to value (LTV). This means you’ll likely get a much better remortgage rate.

Should you remortgage now with a fixed rate? A few things first

  • The cheapest remortgage deals are not all about rate. Lenders add extra charges, such as arrangement fees. Do your sums and check the deal is as good as it sounds.
  • You’ll have to undergo an affordability test. When you took out your first mortgage, did the lender just check your credit score and multiply your income? Now lenders want a lot more detail.
  • Considering fixing for 5 or 10 years? Factor in the effect of early repayment charges. Some deals are more expensive to end early than others.
  • Think about using a broker to help you find the right remortgage rate. That’s what Moneysavingexpert’s Martin Lewis recommends. “A broker should be able to quickly source a relevant product that fits your credit history. And offer an extra layer of protection if things go wrong. And carry more clout with lenders to ease acceptance on otherwise unobtainable mortgages.”
Want straightforward advice on remortgaging your home? We’re happy to help here.

Tuesday, 28 February 2017

Rising rates and the subsequent rise to remortgage


The fear of rising rates is driving borrowers to remortgage, new research shows.
According to conveyancer LMS, the number of remortgagors fearing a rate rise has increased dramatically over the last 12 months.

In December 2015, 6,500 remortgagors said they anticipated an interest rate rise within the next year compared to 10,800 in December 2016 – an increase of 66%.

There were 27,700 remortgages carried out in December 2016 and 39% of remortgagors surveyed said they anticipated a rate rise within the next year.

Remortgaging is the process of switching to a new mortgage deal either with the same dealer or a different dealer. The ideal remortgage time is when the introductory or fixed tracker or the discounted rate on your mortgage ends.  It is at this point that your rate is moved onto a long-term variable rate usually the lender’s standard variable rate (SVR).

You can also remortgage when the interest rates keep changing. If you are on a fixed rate and the interest rates go down, you may find yourself paying over the odds.  If you are using a variable interest rate and there seems to be a likelihood of the interest rates rising, you might want to move to the fixed rates.

When opting for a remortgage, it is important that you first check if your current mortgage has any early repayment charges. You also need to find out how much your lender by asking them for a written redemption statement.

The next step is deciding whether you need to make changes to your loan’s terms. For instance, whether you wish to extend the term or borrow more money. Then consider what type of deal you want. If for example, you choose a new mortgage plan, you need to make a choice between a variable and fixed rate and consider what type of each you prefer. You then take into account what is available and ensure you allow plenty time before your current mortgage ends.
There are several things that you need to consider while remortgaging.
•    What are the penalties for opting out of your current mortgage deal?
•    All the fees associated with the new deal
•    Fees you will incur if you deal with a mortgage broker
•    Any legal fee associated with remortgaging

Expert advice is recommended when remortgaging. You can contact us at MAS anytime you have issues or need advice on remortgaging https://www.mortgageadviceservices.co.uk/remortgaging/

Thursday, 23 February 2017

Why remortgaging for equity release is beneficial - and why now is the right time to do it


The main reason that people consider remortgaging is to save money. However, this is not the only reason as to why remortgaging is necessary. There are other considerable reasons for you to move your mortgage loan. Some of the remortgaging reasons include:

Debt Consolidation
For a homeowner having multiple debts and struggling to make the payments, it is often tempting to solicit funds using your home as collateral to clear the debts.It is, however, important for you to carefully think about it before borrowing with your property. This is because you will be putting your property at risk if you do not make the payments.

Release Equity
If in any case you have lived in your home for quite some time, the equity you have built up can become a valuable asset. By remortgaging, you can release some of the equity to use on other things like making improvements on your current home, taking a holiday or furthering your education. The additional amount that you receive is added to your current mortgage deal and can be paid off in monthly installments that are affordable. Often the rate at which the remortgage is paid is lower as compared to the amount you would spend on a credit card or a standard personal loan.

The majority (57%) of remortgagagors in 2016 switched their homeloan to raise capital, according to figures from My Home Move.

The conveyancing specialist said that this suggests homeowners want to release equity ‘cheaply’ for home improvements.

Homeowners across England and Wales, on average, remortgaged for around £15,000 more in 2016 than they did two years ago, borrowing around £181,000 compared to £166,000 in 2014.

Homeowners appear to be taking advantage of the cheaper remortgage deals that are on the market these days. So it would appear that now is a good time to remortgage!

If you have been considering a remortgage but aren't sure of the process, contact Mortgage Advice Services at https://www.mortgageadviceservices.co.uk/remortgaging/ and speak to one of our expert advisors.

Monday, 30 January 2017

The fallout from Brexit and what it means for house prices in the New Year

 
It has been predicted by one of the UK’s largest mortgage lenders that house prices are likely to continue increasing in 2017 but at a much slower rate than 2016 – by just 1% in some cases. House prices peaked at a 10% increase in March 2016.

It is claimed that the decrease in house price growth will stem from continued uncertainty with the UK economy following Brexit back in June 2016. Halifax said it is 'most likely' that the economy will soften over 2017 and lower levels of house sales will occur as more people respond to weaker economic conditions and a deterioration in housing affordability by not buying or moving home.

However, the silver lining to this cloud is that it is predicted that a shortage of properties for sale and low interest rates ensuring mortgages remain cheap will help to keep supporting house prices in general.

There is also continued speculation that slow economic growth in 2017 due to weakening of the pound impacting on import costs could result in pressure on employment and therefore a higher risk of a rise in unemployment.

Martin Ellis, housing economist for Halifax said: 'This deterioration in the labour market, together with an expected squeeze on households' spending power - as inflation picks up and outpaces earnings growth later in the year - is likely to curb housing demand.' 

Halifax's prediction runs parallel with several other forecasts, which point to UK house prices continuing to rise in 2017, but at a slower rate than that seen in 2016.

The Royal Institution of Chartered Surveyors said it believes property values to push up by around 3 per cent over 2017, while Nationwide Building Society predicts house price growth of around 2 per cent over next year.

If you wish to find out more about mortgage rates, take a look at the Mortgage Advice Services website at www.mortgageadviceservices.co.uk  

Wednesday, 18 January 2017

Have you found yourself in the situation where you have to buy a new house independently?


Sometimes life changes mean that we have to face things alone; the same can be true when you come to buying a new house. If it’s the first time you have had to buy a property on your own, you’d be forgiven for feeling a bit daunted by the process. However, the below tips should help put your mind at rest and advise you further on the process of buying a house.

Firstly, review your finances to see how financially independent you are and what position you’re in to go ahead and buy. You’ll need to consider what the equity in your current house is worth, what shape your savings are in and whether you have any shares.

It’s important to find out how much equity you’ll get back from your marital home if you decide to sell it; you can speak to an estate agent and ask them to evaluate the house for you. You also need to know how much you still owe on the mortgage.

When you have these numbers you'll be able to sit down and properly work out how much you have in your budget.

It’s also important to choose somewhere to live that fits your criteria in terms of practicalities i.e. the proximity of the house to your work or childrens' schools. Also, take the time to look into the area if you don’t know anything about it. Find out about the local community, as you’ll want to feel safe and secure in your new home.

Ask yourself questions such as what criteria do you want from a house? Two bedrooms, a garden, off-road parking etc.?

Then there's the issue of your financials of course; it's all very well saying that you want a 3 bed detached house with a large garden and a conservatory; but realistically can you actually afford it without stretching yourself too thinly financially?

If you’ve found a house that needs refurbishing, or substantially more than just redecorating, it’s worth planning out how much this could cost you as well. If you have friends and family around to help you, or who are in the trade themselves, then great. If not, renovation projects can often go on for longer than planned and go over budget too, so be aware of this when choosing your new home.

This is a lot of information to take in, so why not give a mortgage advice company a call to talk through your options with a trained advisor? One such company is Mortgage Advice Services; so visit our website today and see how we can help you with your new independent mortgage.
https://www.mortgageadviceservices.co.uk/

Friday, 30 December 2016

Fixed rate re-mortgaging; life after Brexit



It was inevitable that if Britain voted to leave the EU, there would be a direct effect on the mortgage market. Sure enough, by the time the dust had settled immediately following the leave vote, the mortgage market took a hit and slumped.

However, in recent news it has been reported that the mortgage market, and particularly re-mortgaging, has bounced back; so now could be the perfect time to get involved if you have been thinking of re-mortgaging your property for a while.

Fixed mortgage rates have been gradually decreasing for the past couple of years and are now at a record low which means that you could save a lot of money provided you find the right re-mortgage deal. The latest figures show that 2 year fixed rates have fallen to 2.34% and that 5 year fixed rates have fallen to 2.98% so it's now cheaper than ever to guarantee your repayments.

There is a desire in the market today to attract more fixed rate rather than variable rate customers to decrease the risk of payments defaulting, which could go some way to explaining why fixed rates have come down and variable rates have increased slightly. Whilst essentially a variable rate is still the cheaper option, it is fraught with risk and certainly isn't as stable an option as a fixed rate re-mortgage.

So now really could be the time to re-mortgage; figures show that if you are coming to the end of a standard 2 year fixed rate deal and revert back to the standard variable rate, you could be worse off and the rate could increase, rather than if you re-mortgaged to the average 2 year fixed deal where you really could save yourself a small fortune.

If you like the sound of saving money and want further re-mortgaging advice, you can seek help via Mortgage Advice Services. We are a Nottingham based mortgage advice centre and if you give us a call or go to our website, https://www.mortgageadviceservices.co.uk/remortgaging/, one of our expertly trained customer advice representatives will be happy to guide you through your re-mortgaging options.




Wednesday, 30 November 2016

What is re-mortgaging?


Remortgaging is the process of switching to a new mortgage deal either with the same dealer or a different dealer. The ideal remortgage time is when the introductory or fixed tracker or the discounted rate on your mortgage ends.  It is at this point that your rate is moved onto a long-term variable rate usually the lender’s standard variable rate (SVR).

You can also remortgage when the interest rates keep changing. If you are on a fixed rate and the interest rates go down, you may find yourself paying over the odds.  If you are using a variable interest rate and there seems to be a likelihood of the interest rates rising, you might want to move to the fixed rates.

When opting for a remortgage, it is important that you first check if your current mortgage has any early repayment charges. You also need to find out how much your lender by asking them for a written redemption statement.

The next step is deciding whether you need to make changes to your loan’s terms. For instance, whether you wish to extend the term or borrow more money. Then consider what type of deal you want. If for example, you choose a new mortgage plan, you need to make a choice between a variable and fixed rate and consider what type of each you prefer. You then take into account what is available and ensure you allow plenty time before your current mortgage ends.

Once you have settled on a particular deal, compare the repayment terms with the current ones. Ensure that you take note of all the mortgage costs associated with this new deal including the arrangement fees. These rates should be included in the annual percentage rate (APR) as quoted by your lender.

There are several things that you need to consider while remortgaging.
•    What are the penalties for opting out of your current mortgage deal?
•    All the fees associated with the new deal
•    Fees you will incur if you deal with a mortgage broker
•    Any legal fee associated with remortgaging

Advantages
•    It offers you with the chance to borrow at a lower interest rate
•    You have the option of using your home’s equity for additional money
•    Opportunity to switch to a more deal that is fitting your current financial situation

Disadvantages
By stretching your debts to a longer time frame adds more to your overall cost
-The process can take much time
-There are fees that are attached to remortgaging
-When you use your home as collateral, it can be repossessed if you don’t make the payments as agreed

Expert advice is recommended when remortgaging. You can contact us at MAS anytime you have issues or need advice on remortgaging https://www.mortgageadviceservices.co.uk/remortgaging/