Time to remortgage?

28th July 2020

Borrowers on a tracker, discounted or variable rate mortgage may have already benefited from base rate cuts in March, but borrowers whose mortgage deal is nearing its end, or those currently on a standard variable rate (SVR), should review their situation as there are some competitive products on the market.

Remortgaging is where you take out a new mortgage on a property you already own, either to replace your existing mortgage, or to borrow more money against your property. Reasons to consider remortgaging include:

  • Your current deal is about to end
  • You are looking for a better rate
  • You want to overpay, but cannot do this on your current mortgage
  • You want to borrow more
  • Your home has increased in value and your loan-to-value ratio means you may get a better rate.

Lenders have adapted

Many lenders initially reacted to the coronavirus crisis by restricting the products available (particularly to those borrowers with a high loan-to-value ratio) and remortgage applications faced operational constraints such as an inability to do physical valuations. However, optimism has started to return, with lenders reintroducing a wider range of products and adjusting their processes, for example using automated ‘drive-by’ valuations.

Advice is vital

In such a fast-changing environment, those who are considering remortgaging over the next few months should assess their options now. There are pros and cons to remortgaging and it won’t be right for everyone. At present, the market is more complex, so we believe getting good advice is vital. As well as giving you advice on whether a remortgage is suitable, we will explain the costs, outline potential implications and guide you through the process.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.