With lenders reducing their remortgage pricing, as well as rates for new purchases, now is a great time to remortgage. Several mortgage rates are now available starting with a ‘3’, which feels more reasonable to many. Those coming up to remortgage may still face a payment shock and higher costs than they have grown used to, but the situation is not quite as bad as it might have been only a few weeks ago.
There has been a trend to stick with an existing lender and move onto one of the deals they are offering, which is known as a product transfer. But while this may seem easier than seeking out another lender and applying for a new mortgage, it may mean you don’t get the best deal on the market. Your lender may offer the best mortgage rate, but it may not. Shopping around, comparing all the rates on the market, is the only way to ensure you aren’t paying more for your mortgage than you need to.
This is where a whole-of-market broker such as AWS Private Finance comes in. We look at all the deals on the market to find the best one for your circumstances. It may be that your existing lender is offering the most competitive rate, but we can confirm that either way.
When it comes to remortgaging, is vital to plan ahead as much as possible; we can review a mortgage up to seven months before you need to switch so it is worth locking into an attractive rate as soon as you can for peace of mind. Should rates have fallen by the time you come to remortgage, you can move onto a cheaper rate at that time; this is one of the advantages of using a broker as we will monitor the situation, so you don’t end up paying more than necessary.
Over the past few months, many clients took out two-year base-rate trackers with no early repayment charges as an interim measure because they felt that fixes were over-priced. With remortgage rates coming down, now may be a good time to review this decision and move onto a fixed rate.
There are a range of sub-4 per cent five-year fix options for those who want security and budgeting assistance over the medium term. The good news is that it is no longer the case that you can only access these deals if you require a maximum 60 per cent loan-to-value – there are sub-4 per cent fixes at 75 per cent LTV now as well.
For those wanting a shorter fix to give them a bit more flexibility, one lender has launched a sub-4 per cent two-year fix for new purchases so it is hoped that options will also get cheaper for those remortgaging too.
Best buy remortgage rates
Rate Type Loan-to-value
4.14% two-year fix 60%
3.99% three-year fix 60%
3.87% five-year fix 60%
3.99% five-year fix 75%
Source: Moneyfacts
If you use AWS Private Finance, we will identify the best deal for your circumstances, help you with the application and submit the application and then liaise with the lender until you have your mortgage offer. We also chase the legal work if you are moving from one bank to the other, to make it as stress-free as possible.
Don’t take our word for it; 95 per cent of our reviews on Trustpilot give us five stars, with clients praising us for our ‘great service’, ‘very helpful in providing guidance [and] updates’, being ‘super responsive’ and offering a ‘fantastic experience’. Get in touch to find out more.
