Is Your Mortgage Deal Ending? Why a Broker could save you thousands

Taking out a mortgage is a huge financial commitment, and securing that first deal is a big moment. However, for most UK homeowners on a two or five-year fixed rate, that initial excitement is just the beginning.

You’ll need to remortgage sooner than you might think, and failing to plan ahead could cost you a fortune and leave your home vulnerable if the unexpected happens.

The Hidden Cost of Delay

When your fixed or initial rate deal comes to an end, your mortgage will usually revert to your lender’s Standard Variable Rate (SVR).

The SVR is typically several percentage points higher than the competitive fixed-rate deals available on the market. This immediate jump can add hundreds of pounds to your monthly repayments.

Even if current interest rates feel high, sticking with your lender’s SVR may mean paying significantly more each month. Doing nothing could literally cost you thousands of pounds over the course of a year.

Four Key Reasons to Speak to a Broker

Navigating the remortgaging process can feel overwhelming, but a broker is there to help you secure the best outcome.

1. Access to a Huge Range of Options: 

We work with a comprehensive panel of lenders. This means we can review and compare a vast array of mortgage products from across the market. You aren’t limited to just the few deals your current bank or building society is offering. This significantly increases your chances of finding the most competitive and suitable option for your personal circumstances.

2. Getting You with the Right Lender

Every mortgage lender has different rules for approving applications. They look at income in various ways, have preferences on property types, and may be cautious if you’re self-employed or have recently changed jobs.

Trying to find the right match yourself can lead to rejections. Our expertise lies in understanding these unique lending rules. We could quickly match you with a lender who is most likely to approve your application, and aiming to save you as much time and stress as possible.

3. Planning for Peace of Mind

A mortgage isn’t just about the purchase; it’s also about protecting your ability to stay in your home.

As part of the advice process, you might want to discuss crucial protection options, such as life cover, critical illness cover, and income protection. These policies are designed to ensure that if you are unable to work due to illness, injury, or in the event of death, your family will still be able to afford the mortgage payments. This vital layer of planning helps secure your family’s future.

4. Avoiding Costly Application Mistakes

Mortgage applications can be complex, especially if you have an unusual situation like multiple income streams, self-employment, or a non-standard property construction. A broker’s guidance helps you avoid common errors and delays, significantly reducing the risk of a failed application.

Timing is Everything

You can apply for a new mortgage deal up to six months before your current deal is due to end.

• Act Early to Lock in a Rate: Starting the process early allows you to secure a competitive interest rate. Lender offers are usually valid for three to six months, providing you with a seamless move from one deal to the next.
• Avoid the SVR Trap: Waiting too long increases the risk of slipping onto that expensive SVR while your new application is still being processed. By acting early, you ensure you don’t pay more than you have to.

Other Remortgaging Benefits

• Better Rates Through Equity: As you pay down your mortgage and your home’s value increases, your loan-to-value ratio (LTV) improves. This often unlocks even cheaper interest rates that weren’t available to you when you first bought the property.
• Release Funds: Remortgaging can also be a way to release some of the value (equity) in your home to fund major home improvements or to consolidate existing debt. This needs careful consideration as it will increase your overall borrowing and monthly payments.
• Make Fee-Free Overpayments: When your current deal ends, it’s a perfect time to make lump-sum payments without incurring any early repayment charges (ERCs).

Your Next Steps

1. Check the Date: Find out the exact day your current mortgage deal ends.
2. Gather Documents: Start collecting recent proof of income, bank statements, and ID to speed things up.
3. Check Your Credit File: Review your credit report for any errors that could slow down your application.
4. Speak to Us: Contact a broker early to discuss not only the most suitable mortgage rates but also your family’s protection needs.

We don’t charge a fee for our advice, meaning you can benefit from our expertise and access to a comprehensive panel of lenders without an upfront cost. Our goal is to help you secure the most competitive deal available and ensure your home is financially secure for the future.