Analysis: Remortgaging In The Current Environment

The rates for a 2-year fixed mortgage now sit at around 5% and the Bank of England (BoE) looks set to continue to raise the UK base rate over the course of this year, given UK inflation remains stubbornly high. 

Any mortgage holders that need to refinance at any point over the remainder of 2023 will typically do well to consider their options now. This doesn’t mean you need to start the refinancing process immediately, but you’ll have a clearer idea of your options, the products you’ll be eligible for, what you need to prepare in terms of documents and so on. Enness will talk you through your options free of charge and without any obligation to take discussions further – simply contact us to understand what you may want to consider and what rates we are likely to be able to source for you.  

Remortgaging In The Current Economic Environment: Tips

• As it’s now expected BoE rates will continue to rise over the course of 2023, many mortgage holders are going to move to refinance or explore refinancing in the next few weeks and months to lock in today’s rates, which may be lower than those we see at the end of the year. Get ahead of the game and explore your options early, especially if you are on a fixed rate that is coming to an end within the next 4 months.
• Mortgage products are likely to change quickly as supply and demand changes, lenders look at affordability and they look to navigate any potential volatility caused by investor sentiment about the BoE rate increases and inflation. Lenders are also likely going to want to see how middle-market mortgage holders are able to absorb rising mortgage rates. If you need to remortgage, working with a broker will mean you have access to all the products on the market in real-time: we’ll be able to inform you last-minute if a new product comes up that we believe you should consider or potentially lock in a rate of a product that’s likely to be withdrawn from the market (lenders usually need to honour these).
• We will actively present your case to lenders with the aim of helping them take a holistic view of your situation and see the strengths of your financial position, which supports them in making a lending decision quickly. We’ll also be working to secure the best rate for you and get the transaction completed as quickly as possible – before rates potentially rise again.
• We can usually arrange remortgages in 2-4 months, but remortgaging can take up to eight months to arrange if you have an unusual working setup, a very large mortgage, unusual income or a delicate financial background. Move well ahead of time, even if it’s only to consider your options and understand what documents and information you’ll need to supply so you can start preparing everything you need.
• Ask us to run cost comparisons for you to understand what the most competitive products are and identify if it makes sense to remortgage now (even if that might mean breaking a mortgage early and paying to do so) or waiting a few months and doing so at term. Sometimes the cheapest and best path forward for you will be obvious and sometimes it won’t: a breakdown of the potential savings and costs of different products is often the only way to get a clearer picture of what is best for you.
• Don’t wait too late to remortgage if you are coming to the end of a fixed-rate product – start the process well ahead of your term ending – many people will be looking to do the same.
• Remortgaging offers are usually valid for six months. We can help you time the remortgaging transaction so you can lock in today’s rates and wait to see what happens next in the property market and economically, without actually remortgaging now or losing today’s rates, if you’d like to do so.

 

Cost Comparisons 

In a rising interest rate environment, the simplest advice is often the most useful: if you can, think ahead. You don’t have to take immediate action to remortgage now, but knowing your options, the costs, what’s available to you and what you might expect to pay for a mortgage today will mean you can make an informed decision about when to remortgage. 

If your fixed rate is coming to an end in the next few months and you want to get ahead of more potential rate hikes, or if you simply want to explore remortgaging options, we can run cost comparisons for you. We’ll take any early repayment fees and lender/admin fees into consideration, as well as any other costs you’ll incur if you remortgage. The cost comparison will be invaluable because you’ll have a breakdown of what it is likely to cost you to remortgage at the end of your fixed rate or if it makes sense to remortgage now, locking in current rates. You’ll also get clarity on what you’ll pay with a product that reflects the new BoE base rate. 

Access All The Products On The Market Through Enness

The end of 2022 saw the mortgage market something of a ‘muddle’ as lenders withdrew certain products from the market as they looked to assess affordability in the interest rate rising environment and deal with the sheer number of remortgaging applications. While the mortgage market is less volatile this year, the product offering – and lending criteria – are changing with more regularity than they have done in previous years. If there is concern about a property collapse (whether justified or not), lenders may also pause or withdraw products from the market. 

However, it’s not only that products are being pulled from the market. Lenders need to win business in the current environment, which means they’re looking to secure as many new borrowers as possible. Lenders are still bringing new products to market or they’re looking at ways to ‘tweak’ their current offering to make it more competitive. Working with a broker that has whole-market access but also who knows – in real time – the best products is the key to securing the best rates and terms at the moment. A broker will be able to inform you about products right up until the last minute before you complete a remortgaging deal, and will give you impartial advice on if you might want to consider it in the context of it being more beneficial to you than the offer you are about to take. 

Remortgaging: What Enness Can Do For You 

When you approach us to remortgage, we will give you personalised advice about the best products on the market for you. If there’s anything in your background or situation that will potentially make securing the best rates or terms a challenge, we’ll help you troubleshoot or find a solution that will allow us to negotiate the most competitive deal available. We’ll give you concrete cost analysis, answer any questions you have, look at standard and niche mortgage products that may provide a cost advantage, and negotiate with all the lenders in the market to get the best deal for you. 

We are specialists in high-value and high-LTV remortgaging. We can help you remortgage by:

• Arranging remortgaging offers in as little as 24-48 hours
• Streamlining your application process to make sure it moves quickly  
• Ensuring you have access to the most competitive products on the market in real-time through our team of brokers
• Negotiating your remortgage so your deal is tailored to your needs
• Offering a complete service to arrange a remortgage in 4-8 weeks if you have all the necessary documentation ready
• Helping you time a remortgage deal to meet your current fixed rate ending 
• Running cost comparisons to understand if it makes sense to break a current mortgage and refinance, knowing what you’ll save
• Giving you personalised advice on the best products available for you
• Helping you remortgage as quickly as possible, even if you have an unusual or complex situation, e.g., you are an ex-pat or non-resident

We have a proven track record assisting high-net-worth individuals to remortgage and access the best rates and terms available. Whether your present terms are coming to an end, if you are on a variable rate and want to explore a cheaper mortgage product than you are on already, get in touch – we can help.