The rush to remortgage before Brexit deadline
With Brexit looming and the uncertainty that goes along with it, many are unsure with what will happen once it has happened and what will be the state of the economy. Due to this reason, a lot of people are wanting to remortgage either to make home improvements, or to (which is the most likely at present), is to find a better deal than that which they have now and possibly move lender or to stay with their current lender but on to a different tariff. When is the best time to do this? Many borrowers are unsure when you should remortgage your property and often assume it’s within the last month.
Well at the moment as so many people want to do this for a number of reasons, however, would suggest that it is best to start looking into the possibilities when you think the time is right for yourself and as and when you can, as regardless, of Brexit or not, it is never a bad time to find a better rate for yourself and to hopefully reduce your monthly repayments. With Brexit coming though and the recent interest rate increase from 0.5% to 0.75%, Mortgage Arrangers are finding that people are looking to remortgage and swap lenders for a better mortgage deal. Maybe a fixed rate mortgage would be better at the moment and think that is what the majority of people are looking for so regardless of whether the interest rates go up or not, your monthly repayments would not. This offers a bit more stability in a time of uncertainty; at least you know what your monthly mortgage payments will be in the upcoming years just following Brexit. Those on variable rates, the monthly repayments go up as soon as the interest rates do. To do this you can go to a mortgage broker who will go through all the options with you from the firms they have on their books and normally for a fee or another way is to look on comparison sites online and finding a deal that suits you that way. These days it can be quite simple and straightforward to do online yourself, therefore cutting out the middle and some fees for yourself.
Another reason for the rush to remortgage is for those who are thinking of making home improvements rather than moving house due to the uncertain property market at the moment. House prices seem to be decreasing slightly and people are investing more money into their current properties in hope of the property being worth more money when they do eventually go on to sell in the future. All sorts of home improvements can increase the value of your property, especially extensions, but remember to factor in the costs of planning permission and architect fees etc.
For borrowers who have taken advantage of the Help to Buy Scheme, it is still possible to remortgage – more information on this is available on Which? here.
So basically what it comes down to is, you could leave it to the month before Brexit to change and remortgage your property or you can start looking into it now and at least see what your options are and then you know and can change at any point you may be ready to. There seems to be a rush as people are not certain about the interest rates etc, but look online and use some mortgage calculator tools to help you figure out which deal is best for you and on some comparison sites to give you an idea of what is available and move from there. If that is only a month before, or a week before, so Beit, it is what suits you and your finances and depends on each individual circumstance.