Why homeowners shouldn’t wait if it’s time to remortgage

Tomorrow, 3rd August, the Monetary Policy Committee meet to decide the future of the current base rate. The recent drop in inflation means we could be looking at a 0.25% increase instead of the initial predicted 0.75% increase. Mortgage rates could also rise as a result, so it’s a good idea to get ahead of any further increases.

What does this mean if you’re looking to remortgage?

If you’re approaching the end of your current mortgage deal, you might be wondering whether to act now, or to wait and see what happens to interest rates before deciding your next move - the good news is that you may not have to wait until your current deal ends to start looking for a new one.

If you have six months or less

If your existing mortgage deal is due to finish within the next six months, it might be a good idea to start looking for your next deal as soon as possible to avoid rolling onto your lender’s SVR when it ends. The quickest way to get started is to complete our?online Mortgage Finder. Find out which remortgage deals you may qualify for and how much your monthly payments might be within minutes.

What can you do to minimise a jump in payments when it’s time to remortgage?

If you do have more than 6 months left to run before your current mortgage deal finishes, and you’re on a lower rate, you may want to think about overpaying if you can afford to and your mortgage allows you to. This will reduce the amount you have to borrow when you come to remortgage, which should help keep your costs down despite higher rates. Even overpaying by a small amount each month can make a significant difference over time, although obviously the more you can overpay by, the faster you’ll be able to pay off what you owe.

It’s also worth keeping in mind that there’s more to a mortgage than just the rate. The most competitive rate might not be the best – or cheapest option overall – for everyone. Our expert advisers will search the market to make sure the mortgage deal you’re getting really is the right one for you.?

London & Country Mortgages Ltd, Beazer House, Lower Bristol Road, Bath, BA2 3BA is a company limited by shares. Our Companies House number is 1 988608. We are also authorised and regulated by the Financial Conduct Authority. Our FCA number is 1 43002. The FCA does not regulate most Buy to Let mortgages.

Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

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