For those involved in the mortgage market the arrival of autumn coincides with the peak remortgage season. The next few months can often see increased demand for remortgages and this year may be even busier due to the pandemic.

Now is the time to start doing your remortgage research.

Around this time of year, you’ll hear the phrase “we’d like to be in for Christmas” from people buying houses, and you may even have said it yourself. This is one reason why autumn and winter sees a higher number of mortgage products coming to the end of their initial terms usually of two, three or five years. When this happens, your interest rate will usually switch to your lender’s Standard Variable Rate (SVR).

The SVR is often higher than your initial rate, meaning your monthly payments could increase and in some cases these increases can be quite substantial. Lenders like the certainty of their income streams and so offer incentives for those taking products for a specific number of years. However when the product comes to the end you will then be paying their standard rate with no special incentives.

Remortgaging can be a way of saving money on your monthly repayments. 

You could see a more significant reduction on your monthly repayments if you were able to save some money during lockdown and can also pay off some of your mortgage – although this could incur an early repayment charge so check your paperwork carefully and consider timing any reduction to coincide with the expiry of any early repayment charges.

By remortgaging, you could switch from a tracker product with variable payments to a fixed rate option where you pay the same each month and vice versa depending on your circumstances. There are also flexible mortgage products allowing you to take advantage of any surplus credit balances to offset against your mortgage interest. 

Selecting the right product is even more important in the current climate where unemployment is increasing and there is a squeeze on personal finances for many of us.

The Covid-19 pandemic has made lots of things more complicated and remortgaging is one of them. 

But, don’t despair! Although many mortgage lenders have introduced policies about applicants who are or have been on furlough, in many cases you can remortgage with your current lender without such policies applying to you. This might be frustrating if your current lender doesn’t offer the best deal but it’s likely to still be better than switching to the SVR.

If you’re not sure about your options and your eyes are glazing over at the mere thought of mortgage product and interest rate comparisons, you may want to speak to a Mortgage Consultant. We will help you find the best option for your circumstances and guide you through the process. Whether you decide to speak to us or handle matters yourself, you should start sooner rather than later. Typically, remortgaging can take four to eight weeks. However, in the current post-lockdown, pre-Christmas busy period, it could take longer. It’s best to get ahead of the game.

If you’d like to discuss the options available to you, contact your Dentons Mortgage Consultant today.