We have been noticing that some lenders have started writing out to clients well in advance of their deals coming to an end. This is a change as they used to leave it until 2-3 months prior to the remortgage being due.
Whilst it certainly is to be welcomed that lenders are encouraging clients to look for a new deal rather than lapse onto the standard variable rate (especially now some are in advance of 7%!), borrowers should be careful about locking in too early without a broker on their side. This is because interest rates have been falling in recent weeks and locking in now might be a bit premature in some cases.
What we do for all our clients is to compare the new deal on offer (these are called Product Transfers) against the deals offered by competitor lenders. to see if money can be saved by switching. It is also possible with some Lenders to select a rate now and change it nearer the time.
It certainly can be a bit of a minefield so I would recommend you take up our offer of a free remortgage review, and we will guide you in the right direction to avoid any expensive errors.
Whilst the adverts you see on TV might have you believe older clients asking about Equity Release mortgages are away gallivanting on world cruises, the reality so far this year has been mature borrowers reaching out for assistance to cope with the rising Cost of Living.
Everything has been going up and even if inflation flattens out or reduces during the remainder of 2023, that won’t mean prices in the shops will be coming down, just that they will be increasing more slowly.
Whilst it certainly is far from ideal to be raising capital to cope with everyday living costs, it might be right in certain situations, but before proceeding it’s important that you speak to us about all the other options, which might include help from charities and other non-lending alternatives that might well save you thousands of pounds in rolled up interest.
The market is holding up very well so far and we have seen lots of interest and indeed, applications coming in from people looking to buy their first home or move up the property ladder. We haven’t seen much in the way or dramatically low offers being accepted but it would be fair to say sellers are more likely to take a slightly lower offer now, than they would have been 12 months ago.
Mortgage lenders are keen to lend in this space and not only are 95% mortgages very much available, we have seen interest rates drop below 4% for the first time this year, although to get one of those you would need a much bigger deposit.
We have found that benefits provided by some employers have become much more generous on the whole, especially the bigger ones who know the importance of retaining good staff members.
One of the best examples we have seen this month was from someone who worked for a firm based in the US, where the sick pay entitlement was 75% of take home pay, all the way through to retirement.
It really is worth checking your own sick pay entitlement from work, as well as any Death in Service benefits you might get. If they are not as generous as you might have hoped please get in touch and we can help you arrange your own sick pay policy (Income Protection Insurance) and tailor the benefits provided to fit into your budget – it’s hard to pay a mortgage if you have to rely on SSP of only £99.35 per week!
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Last Edited 27/02/2023