England has roughly 28 million households and of these around 5 million people this year will be paying or end up paying the higher bank standard rate for their mortgage which is madness! There are very few reasons to be paying the higher bank rates of around 7.5% to 8.5%. The reasons generally are you’re waiting for a lump sum to clear the balance, or you are waiting for the house to sell which will enable you to get a new deal with a new property.
The reason people do not remortgage is because they do not know they can. They think it is too expensive or just don’t know how to. A remortgage is there to save you money. As a Mortgage Advisor in Middlesbrough, the primary aim is to keep your monthly bill down. After 20 plus years of looking after clients’ mortgages around 75% of them look to do a remortgage on a like for like basis not wanting to borrow any more money, but, wanting to avoid the huge bank standard rates.
To give you a quick overview, a £100,000 mortgage at 4.5% pays £375 in interest a month, a bank standard rate at 8% would be paying £667 in interest. If we arrange a new deal, you will save £292 a month by doing very little and we look after it all.
Why Remortgage Now?
Mortgage rates are changing all the time, we get notifications daily of rates changing. We must keep on top of the information and make sure you are always getting the best rate to suit you. This means keeping track of all the changes and making any amendments necessary. Our advice to everyone is to remortgage 3 or 4 months before a current deal comes to an end. So, if you have a deal coming to an end in June, you should be looking now. If rates drop further, we can always go back and ask for a cheaper rate. However, if rates jump up again you will have secured the rate that would be best for you.
Beyond Rate Savings: Unlock Your Property’s Equity
Remortgaging isn’t just about reducing your monthly payments. It can also be a powerful tool for unlocking the equity in your property. You can use this equity for:
· Home improvements: Transform your living space with a new kitchen, conservatory, or extension.
· Gifting to family: Help your children get on the property ladder.
· Property investment: Expand your portfolio with a buy-to-let property.
· Debt consolidation: Streamline your finances by consolidating debts into a single, manageable payment. (Remember, while this can help with monthly budgeting, it may increase the total interest paid over the loan’s lifetime. Always consider your long term finances)
Dispelling the Myths: Remortgaging Isn’t Expensive!
Why do people think it is so expensive to do a remortgage? I guess it is because they have not looked at it or asked the questions. Most high street lenders and even second or third tier lenders will allow a remortgage with no additional costs, offering free legal, free valuations, and depending on the property value it may be worth doing this with no lender fee. If you stay with your existing lender, you don’t even need to do further underwriting or credit checks.
Staying with your existing lender or a product transfer as it’s called, is where your current lender will allow you to move the mortgage on a like for like basis to a new fixed or variable rate. This means you do not need any legal representation, the lender is already noted on the land registry, no valuation as they already have an indexed valuation they can use, and no underwriting. You could have a CCJ, been declared bankrupt or changed jobs and the lender will still allow you to swap your rates. A product transfer avoids any extra credit searches. The only thing the lender needs to know is that you are not in arrears on your current deal. They don’t want you paying an 8% mortgage and causing you financial hardship, when you could be paying 4%.
Why Choose Good Mortgage Solutions?
As an independent mortgage advisor, I always want to know about you and what you want. Never forget it is your mortgage, you are paying the bill, no one else. So, if you want to pay over the odds and give the mortgage company more money, you can. They are not going to object. They are ‘legally’ covered with the letter they send you offering you a new deal. But if you are paying too much it is our aim to find a deal that best suits you, your personal needs, and requirements and makes you the biggest saving.
Our initial meeting takes around ½ hour when we discuss, what you need and want from the mortgage, we can then take it away, do some research, and start to approach lenders for you. This will not cost you anything. By spending ½ hour with us we can look at saving you hundreds of pounds per month. Don’t be stuck with the other 5 million people paying too much in 2025. The big question is, what would you do with £200 a month saving? Leave a comment below.
What would I do with £2,400 a year? That’s easy it covers my golf fees and my season ticket and have money left over.
Join the hundreds of families we’ve helped across Teesside and book an appointment with our mortgage advisor Middlesbrough for a free no obligation appointment.