The mortgage market is in a mess at the moment as we are held to ransom by the main banks that are resisting lending so they may increase the amount of cash they hold. The market is very uncompetitive at the moment therefore remortgages are difficult as demand outstrips supply.
Your deal may be close to an end or you want to see if there are better deals on the market for remortgages. It is much harder to get a mortgage in the current climate with high loan to values being asked for; the minimum for most is around a 20% deposit.
So first of be aware of your current providers standard variable rate that you will be moved onto when your existing rate expires. If you can’t meet the deposit demands then stick with your current mortgage provider and bear in mind even if you can afford a 15-25% deposit, would you need that money for other things such as a cushion should you be made redundant (which is highly likely in many industries at the moment).
For those deciding that remortgages are an option available to them you will have to decide if you are happy to take a calculated risk or you are risk adverse. With interest rates so low at the moment and with many big names reporting that they predict for them to stay low well into next year it would be best to go with a tracker mortgage or variable rate mortgage for remortgages or for the latter group you can lock into a fixed rate mortgage now and give yourself that piece of mind of knowing what your monthly repayments will be each and every month. One thing to consider with a fixed rate deal though is a short term fixed rate deal over two to three years may have you finishing when the base rate is at a much higher rate of say 5%.
These are steps for you to consider before going ahead with remortgages. However the best advice will come from an independent advisor, look for a whole of mortgage broker who can find the best
remortgages deals and give you independent advice.
