You might wonder: “If I secure a rate today for a remortgage or purchase and then rates move, what happens to me?”
If you have secured a rate today and the application is complete, don’t worry, the product you applied for is secure and will be honoured by the lender. However, if rates reduce before you complete, that’s great news! Even if the application is in and the lender has already issued an offer, our team of mortgage advisors Middlesbrough can go back to them and request that lower rate on your behalf.
Remortgaging: The six month rule
As a company, we revisit mortgage rates on a weekly basis. For a remortgage, we suggest you sit down with mortgage advisors Middlesbrough to look at a new deal 6 months before your current one ends.
A mortgage offer generally lasts 6 months. If your current fixed rate expires in December, we suggest starting your search in July to secure a mortgage by August. This gives us a window to review it until completion, allowing us to swap and change with every rate reduction. While a purchase moves faster (with solicitors currently quoting around 15 weeks for contracts), it is still vital to keep checking for reductions that can be passed on to you.
Are there any downsides to switching?
If you are doing a “product transfer” (staying with your current lender), there is usually no downside. We simply apply for the reduction for you.
However, when remortgaging or buying with a new lender, you must be aware that asking for a rate reduction means the lender will rerun your credit checks. As long as you haven’t taken out new debt that affects affordability, or had any late payments or CCJs since the original application, everything should be fine.
If your circumstances have changed, always check with your mortgage advisors Middlesbrough first. A new amendment can technically cancel out the original offer, so it isn’t without risk. If it fails, you would need to find a new lender and start over.
As your local mortgage advisors Middlesbrough, we are always searching for new deals and ways to save our clients money. With everything happening in the world today, don’t wait for the “perfect” time, the right time to secure a deal is now. Once that’s done, let us handle the hard work of tracking the rates for you.