Is your mortgage maturing soon? Check out a new deal as soon as possible

Low and competitive rates available for new mortgage deals

I have recently written several articles on how low and competitive mortgage interest rates are currently available in both the residential and investment markets. However, a caveat to this is that we are currently experiencing a very stable property market, with prices sustaining their current value. As a result someone who is looking to buy a property, especially for investment purposes may want to wait, to see what the property market and economy do over the rest of the year. This is particularly relevant if you factor in the investment property tax changes. 

Take action if your mortgage deal matures soon? 

However, according to The Guardian £26 billion worth of mortgage deals are due to mature in October 2019. If you are in this position you can take advantage of these highly competitive mortgage rates when remortgaging your home. 

What is mortgage maturity?

What we mean by mortgage maturity is that your current fixed rate is expiring soon, so you will automatically switch to the lenders standard variable rate, which is usually set between 4-6% depending on who your mortgage lender is. This is a very high interest rate which could see your payments more than double, depending on your previous mortgage rate. 

Romany Yousab, Mortgage Broker Nottingham said:

‘At Thomas Oliver we recommend reviewing your financial situation with a mortgage broker if your mortgage deal is due to mature soon. Our mortgage brokers are qualified to recommend the best mortgage product for you. Given current mortgage rates it may make financial sense to re-switch to a new fixed rate as not only will you not be paying the high standard variable rate, but you could actually reduce your payments due to low competitive interest rates currently available in the mortgage market.’

Romany Yousab, Mortgage Broker Nottingham continued: 

‘Recently when dealing with certain remortgages for our clients we were able to save some up to £200 per month. In some circumstances this is because they have benefited from an increase in property value, so their loan to value ratio has improved and they are offered better mortgage rates. Also, we have seen over the years declining competitive interest rates for various mortgage products.

Now some of you will be thinking this all sounds too good to be true and what is the catch? Honestly there is no catch and here at Thomas Oliver we offer a free mortgage consultation service so you have nothing to lose by contacting our mortgage broking team and obtain our mortgage advice. Any charges incurred by switching to a new lender will be taken into consideration when comparing this with staying with your current lender and re-fixing your mortgage through them. However, most lenders now offer a free solicitor service and a free valuation for your property as they are all vying for your business, so switching to another lender usually incurs little or no charge. Having reviewed your financial situation if our mortgage brokers conclude that it is best to re-fix with your current lender, this process is done free of charge and you will still get the advised service from us.’

Romany Yousab, Mortgage Broker Nottingham continued: 

‘Our mortgage advisers will help you decide what is the most appropriate mortgage product for you and which interest rate will suit you best rather than give you all the options and let you select your preferential rate, which is the service you receive direct from the bank. The reason this is very important and beneficial to you is because you may think the lowest interest rate is the best deal but some lenders have incredibly extortionate arrangement fees which should be taken into account in your overall decision making. This actually means the lowest interest rate deal may cost more than a higher interest rate deal with no fees.’

Summary...

Overall, remember if you are one of those individuals with an expiring fixed rate mortgage deal in the Autumn it is important to speak to us straight away as we can sometimes re-fix your mortgage early without you incurring a charge and reduce your monthly payments straight away. Remember re-fixing your mortgage may not be the best option for you especially if you are looking to move home which is why our mortgage consultations are specific and individual to your needs. Our mortgage broking team appreciate everyone is unique and has their own requirements which we always take into account when offering mortgage advice. For a free initial mortgage consultation contact our mortgage brokers on 01707 872000.

For more information read:

• Using a mortgage broker can speed up the property buying process
• How do you find the best fixed rate deal?

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.