Considering Your Re-Mortgaging Options During Uncertain TimesSamer Belal
It can’t have escaped your notice that we’re living in unprecedented times, with coronavirus impacting pretty much every area of our lives. The housing market is not immune to the global uncertainty that has been caused by COVID-19, leaving a lot of homeowners wondering what to do with regards to remortgaging.
The mortgage market is changing on a daily basis, meaning that keeping an eye on the latest developments and seeking out ways to reduce your monthly mortgage payments is more important than ever. We’re all trying hard to adjust to the new world we find ourselves in and lenders are no different, as social distancing is causing real logistical problems.
Staff Shortages & Online Valuations
Valuations are one area of business that lenders have had to adapt to, with online valuations being used when applicable. However, when a physical valuation is essential, these will not take place until the lockdown has been lifted. Then there are the staffing issues that COVID-19 has caused, leading to many customers experiencing lengthy wait times on the phone and mortgage applications taking much longer than usual.
That said some UK mortgage lenders are coping with all of the current challenges better than others, with some still offering plenty of mortgage choices for customers who need them. So, if you’re considering remortgaging during these uncertain times, don’t worry – you still have options.
“My fixed-rate mortgage is coming to an end. What should I do?”
Switching to a better mortgage rate continues to be the number one way to save money over the lifetime of your mortgage. Well, the good news is that if you find your fixed-rate coming to an end, it is possible that we could switch you to a better mortgage rate as much as 4 months BEFORE your current deal expires – sparing you from having to go on your current lender’s standard variable rate.
As a homeowner, you’re most likely already aware of the payment holidays that are available from some UK lenders, however, if your rate is soon to run out, we recommend that you talk to us before agreeing with anything. One reason for this is that if your rate expires during this payment holiday, they are not likely to offer a rate switch, leaving you paying much more on their variable rate.
Another reason is that it’s not possible to remortgage with a new lender while on a payment holiday. This means you’ll still be stuck on the variable rate and with some lenders refusing to consider a new rate for their customers for up to 6 months after the holiday has finished, you could really regret taking advantage of it further down the line. Because of this, you may want to consider taking a better rate before agreeing to a payment holiday. That said, the rules change from lender to lender and the picture is evolving daily, so checking with your mortgage provider is advisable.
Payment Holidays MUST be Agreed
However, with many people not being able to work right now, a payment holiday may be your only option. If this is the case, then you must contact your lender to put an agreement in place, rather than simply canceling your direct debit, as failing to do so will lead to your mortgage lender chasing you for payment and your credit file being adversely affected.
If you’re having problems getting through to your lender, we’d recommend looking on their website to see if you can apply online for a mortgage payment holiday. Just remember to read the terms and conditions carefully, so that you fully understand the financial implications of doing so. You should only consider taking a payment holiday if you need it, as it could impact on both the short and long-term costs of your mortgage.
Need Some Expert Professional Advice?
So, if your current fixed-rate mortgage is soon to come to an end and you’d like some expert professional advice on switching to a better rate, you can reach us by calling 0113 873 0113 today and we’ll provide you with all the free, no-obligation guidance you need to make wise informed decisions.
However, if you would like to know more about what we do at REMOUK, visit us online at www.remouk.co.uk where you’ll find everything you need to know. We hope you found this blog helpful. We’ll be back with more mortgage advice soon, but in the meantime, stay home and stay safe!
YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBT SECURED ON IT.