Time to remortgage?
It may be a good time to review your mortgage. House prices have increased in many areas and this can mean that the amount of the mortgage may now be a lower proportion of the value of the house. Lenders will often give better deals when the ‘debt to equity’ amount is lower.
Jim bought a house worth £200,000 with a 25% deposit. The interest rate he is paying is 1.89% (using First Direct 2 Year Fixed as an example). His property has now increased in value to £250,000 which means his loan is now only 60% of the value of the property. This means he could qualify for a lower rate of 1.49% if he remortgaged. In this example that would be worth £600 per year.
There are many factors involved in getting the right mortgage so professional advice must be taken first. Our advice would be to consider a review of your circumstances.
Tip for Our Clients
If you’ve got plans to move house and need a mortgage then please keep us posted as soon as possible. Lenders will usually want up to date accounts and tax returns as part of their underwriting process. By giving us a little notice we can make sure you have everything in place in advance. If you do require a mortgage then we can introduce you to Craig – the mortgage advisor we work. Craig is very used to getting mortgage deals for writers and we’ve had a number of clients who have been delighted with the service they’ve received.
This information is based on the opinion of Writers Tax Limited and does not constitute financial advice or a recommendation to suitable mortgage products, you should seek independent financial advice before embarking on any course of action.
Your home may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you re-mortgage.