Remortgage warning as home owners need to act 'immediately' to get the best deal
EXCLUSIVE: People have been urged to take action early well ahead of when their current deal comes to an end.
Families soon to remortgage should have been urged to get their ducks in a row well ahead of when their current deal expires.
Jo Pocklington, managing director at Purplebricks Mortgages set out what homeowners need to do make sure they get the best deal.
One of her insights was to take action early, warning: "Ideally, start discussions with your broker six months before your remortgage date. If you have less time, reach out to a broker immediately."
She said it's important to get in touch with a broker as they will review your options, including any deals with your current lender and other offers on the market.
Ms Pocklington added: "Gather all necessary documents such as payslips, bank statements, proof of ID and address, and your latest mortgage statement.
"Having these ready will help streamline the process and ensure all the numbers align."
Once you have got the ball rolling with your broker, it's important to regularly review rates on the market.
Ms Pocklington explained: "Your adviser will monitor your remortgage process until completion and will notify you if better rates become available.
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By consulting with a mortgage broker and preparing in advance, you can ensure you secure the best possible deal when it’s time to remortgage.
The Bank of England is expected to cut the base interest rate this year, meaning rates could fall on mortgages.
He told Sky News: "Around mortgages specifically, we've just come off a decade where mortgages have been in the 1.5-2.5 percent range.
"The expectations the market have is that interest rates probably won't get below 3.5 percent. And that means mortgages, or the new normal for mortgages, will be in that 3.5-4.5 percent range, not 1.5-2.5 percent."
Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management, agreed with the prediction that mortgage rates will remain higher than they were previously.
She said: "The interest rate environment after the Global Financial Crisis was an artificial one but we are now back to reality.
"Most people didn’t take advantage and clear their mortgages early, overpay or reduce the term when rates were ultra-low anyway. They just enjoyed the enhanced lifestyle choices they could make as they had more disposable income."
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