Remortgage, relax we take care of everything

There could be light at the end of the tunnel as a dramatic drop in inflation announced last week could mean the end of the rate increases experienced over the past two years.

Rates dropped to an all-time low in March 2020 at 0.1% to try and shield the economy from the impact of coronavirus and remained at that level until November 2021. Then the rise began, by September it was 2.25% and by the end of that year 3.25% - the highest in a decade. Fast forward to November 2023 and the base rate stands at 5.25%, its highest since January 2007. 7.5 million households are expected to have been affected by the rate rises. But with inflation slowing, have we seen the worst of high rates and could mortgage costs start to come back down?

Annual inflation fell to 4.6 per cent in October from 6.7 per cent in September, surprising investors, and the Bank of England. 

Many of the country’s major lenders - and quite a few smaller ones, too - have slashed mortgage rates in response to dramatically improved inflation data. At the end of last week there were circa 30 lenders offering a sub 5.0 per cent fixed mortgage compared to 13 at the start of October. Mortgage lenders were already at war with each other on pricing and these inflation figures will only encourage them to go even further, and quicker. 

Should I hold out for a lower rate?

With fixed-rate deals expected to improve, many may be tempted to hold out and delay locking into a new rate in the hope that they fall rapidly. 

You can secure a new mortgage rate up to six months in advance of your deal ending. Even when purchasing a property if rates improve between application and exchange “most” lenders will allow a change of product. Given the rollercoaster conditions seen over the last two years my advice is to secure a new deal as early as possible. It gives you protection if the market takes a negative turn and if rates improve you can still benefit. Its not uncommon for us to change products on behalf of clients several times before the new deal is in place – it’s the market we are in!

Top tips

· Purchasing a property? Get an agreement in Principle (an indication from the lender of how much they would be willing to lend) Your broker will also be able to give you an indication of cost and rate based on your circumstance.

· Own a property? You can secure rates up to 6 months before your deal comes to an end – worth dusting off the mortgage paperwork and getting a quote. 

· Let a professional help. We do this every day and are up to date with what lenders offer and the criteria they are likely to accept. Our Altrincham remortgage specialist can help

Remortgaging: it sounds simple enough, right? Find a better deal, switch, and save money. But in reality, navigating the mortgage market can feel like wading through a dense jungle. With countless lenders, complex products, and ever-changing interest rates, it's easy to get lost. That's where Nick, your Altrincham mortgage broker steps in, acting as your experienced guide.

Here's why using a Altrincham  broker for your remortgage is a smart move:

1. Access to the Whole Market (or a Significant Portion):

• Expanded Options:     Brokers often have access to deals that aren't available to the public      directly. They work with a wide range of lenders, increasing your chances      of finding the perfect remortgage tailored to your specific needs.
• Saving Time and Effort:     Instead of spending hours scouring comparison websites and contacting      lenders individually, a broker does the legwork for you. They'll research      and present you with a shortlist of suitable options.

2. Expert Knowledge and Guidance:

• Understanding the Fine Print:     Mortgage agreements can be complex. Brokers are experts in deciphering the      jargon and explaining the terms and conditions in plain English.
• Personalized Advice:     They'll assess your financial situation, understand your goals, and      recommend the best remortgage strategy for you. This includes considering      factors like your loan-to-value ratio, credit score, and affordability.
• Navigating Complex Situations: If      you have a complex financial history, are self-employed, or have other      unique circumstances, a broker's expertise can be invaluable. 
• Speaking with a Mortgage Advisor in Altrincham can help navigate the different criteria lenders will assess such      as your credit profile, income, outgoings, and the type on property you  are buying. 

3. Streamlined Application Process:

• Handling the Paperwork:     Brokers can take the stress out of the application process by managing the      paperwork and liaising with lenders on your behalf.
• Faster Processing: Their      experience and established relationships with lenders can often lead to a      smoother and quicker application process.
• Minimising Errors: They      can help you avoid costly mistakes that could delay or jeopardize your      remortgage application.

4. Potential for Exclusive Deals and Better Rates:

• Access to Broker-Exclusive Deals: Some      lenders offer exclusive deals to brokers, which aren't available to the public.
• Saving You Money:     Ultimately, a broker can help you save money on your remortgage by finding      the best possible deal and avoiding costly mistakes.

There are some lenders who don’t use intermediaries, to access their deals you would need to go direct to the bank/building society. 

5. Impartial Advice:

• Acting in Your Best Interest:     Reputable brokers are regulated and obligated to act in your best      interest. They'll provide impartial advice and recommend the most suitable      remortgage for your situation.
• Avoiding Bias:     Unlike going directly to a lender, who may only offer their own products,      a broker can provide a wider range of options.
•  If you’re looking to remortgage in Altrincham contact Nick for a chat and he will be able to give you an idea of what’s possible. Nick will assess what your current lender can offer as well as the wider market.

• Our Altrincham remortgage broker does not charge advice fees. Like all mortgage brokers are paid a procuration fee from the      lender we place you with. 

· You’ll pay no more applying through us than you would going directly to the lender on the same deal – but we’ll also handle the entire process for you from application right through to completion.
 

If a better deal becomes available before you complete, we can swap you on to it if it's a better one for you.

In conclusion:

While you can remortgage on your own, the benefits of using a broker are undeniable. They offer expertise, access to a wider range of deals, and can save you time, money, and stress. By entrusting your remortgage to a professional, you can ensure you're making the best financial decision for your future.