Do you know the benefits of advice before re-mortgaging?
Stay or Switch?
Did you know that 55% of customers say they’re likely to stay with current lenders when it comes to re-mortgaging? But – there could be a better deal waiting with another lender, we’re here to help you find it.
As part of Legal & General’s research, they delved into the reasons behind why customers said they would stay with their existing lender.
- 42% gave the reason of trust and a belief that existing lenders will give the best deal.
- 38% of people explained that it felt like the easiest thing to do.
- 18% of people did not feel they would get a better deal with another lender.
As independent advisers, we have access to lots of deals and lenders and make sure we thoroughly understand your individual circumstances to find a match. It might be that your current lender does indeed offer the best deal for you – but in many cases, there are better deals elsewhere.
Advice before Re-mortgaging
There’s such a lot to do in life, so when it comes to switching mortgages, it can be hard to find time to look for the best deal. And what features should you look out for? Research by Legal & General shows that interest rates were considered the most important factor by 63% of respondents. But there’s so much more to re-mortgaging – and getting the help of an adviser can gain more than the best rates:
- We will work with you – and fully understand your situation before recommending the most suitable lenders and deals. We are not only experienced at finding all types of products, including those for out of the ordinary situations, We have access to many lenders and deals not available with the lenders directly.
- Advice you can trust – One of the many benefits of using a mortgage adviser is that we are regulated by the Financial Conduct Authority (FCA). What many consumers don’t understand is that when they go direct to their bank, the full responsibility for their product choice lies with them.
- More time for you – We’ll find you the right product and undertake most of the administration, so you have more time to spend elsewhere.
- Potentially lower rates – advisers build relationships over years and could have access to special rates that you would not be offered directly by a lender.
- Savings in the long run – there’s a myth that working with advisers is expensive. But we can access whole of market deals, so you could benefit from paying less in the long run.
Key reasons not to stay on a Standard Variable Rate
Have you thought about your re-mortgage options?
Recent consumer research carried out by Legal & General Mortgage Club, found that 41% of respondents were considering not re-mortgaging, and instead staying with their existing lender and accepting the switch to a Standard Variable Rate (SVR).
So why are people opting to stay? The research uncovered these reasons:
- Having debt
- Being financially impacted by Covid-19
- Worried about lenders scrutinising their finances
- Economic uncertainty
But did you know that switching to an SVR could mean facing up to a £2,500 annual increase in repayments?*
As advisers, we can help you find the right mortgage deal for your circumstances.
And, I can potentially save you £1,000s in unnecessary repayments.
There are plenty of great fixed rate deals available, including furlough-friendly mortgages and specialist lenders who can help borrowers with more complex needs.
To discuss your options, let us know when is best to contact you, fill in our call back form today.
Don’t just think about the Rate
Understandably, most people seek out the lowest interest rate when re-mortgaging.
In fact, 63% of respondents in a recent survey by Legal & General Mortgage Club, declared interest rates to be the most important factor when either re-mortgaging with their existing lender, or moving to another provider.
Although an important factor, there is so much more to think about –
And as your adviser, We can help you.
Together we’ll consider:
- Your current and future financial requirements
- How long you’re likely to stay in your home
- Whether your circumstances are likely to change in the near future
- Whether you have any plans for retirement
- What monthly repayments you can afford
This information will help us to determine the length and term of your new rate and mortgage, whether overpayments are feasible, and factor in some of the hidden costs mortgages can have, such as early repayment charges.
By working with us to re-mortgage, We can not only help you find the best rate but you can also be assured that you’ve got the right long-term mortgage for both your current and future needs.
Together, we can find the right deal for you.
Before securing your next mortgage deal, it’s important to reflect on what’s changed, and also what’s likely to change in the future. These are factors which could influence how much you need or want to borrow. As your advisers, We can help you ensure your next mortgage fits both your current and future needs.
After all, a lot can change in 2, 3 or 5 years. We’ve all witnessed the pandemic being testament to this. Think about your life when you initially agreed your mortgage – compared to today. What, and how much, has changed?
Questions to consider could include:
- Has your family grown or is it growing?
- Are your children heading off to university or interested in buying a home of their own?
- Has your relationship status changed or planning to change in the future?
- Have your finances or personal circumstances changed or been impacted by the pandemic?
- Has spending more time in your home over the last 12 months made you re-think your requirements?
A recent survey undertaken by Legal & General Mortgage Club identified the following reasons why people are considering additional borrowing on their mortgage right now:
Home improvements/renovation costs (34%), home extension / building works (27%), other property purchase (24%) and debt consolidation (17%).
Perhaps you’ve already made the decision to add additional borrowing to your re-mortgage for one of these reasons?
Or perhaps you’d like my help to work out your borrowing needs?