The global Covid-19 outbreak has caused disruption everywhere including within the property market. However, for those who are due to remortgage within the next 6 months, the opportunity to save lots of
money by taking advantage of very low rates is still available.
Here are the main reasons why homeowners can still remortgage despite the restrictions imposed as a result of the Covid-19 pandemic.
- Low interest rates. The Bank of England has recently reduced the base rate to a record low, in the wake of the coronavirus outbreak. Generally speaking a lower base rate is good news for borrowers because the interest they repay will be lower, which in turn means lower mortgage repayments. The impact of lower interest rates on mortgages will depend on the type of mortgage you have, the amount you have borrowed and your mortgage term. To find more about this read our article How is your mortgage affected by Bank England’s record low base rate cut?
- Lenders are still lending. The majority of lenders still offer very competitive rates as well as broker-exclusives remortgage deals which you can access via Fairview Financial. There is no denying that the Covid-19 outbreak has had a massive impact on the property market and when it comes to buying a new house the borrowing options are currently a lot more limited. But increasing remortgaging activity has seen lenders still offering some great deals.
- Mortgage brokers, lenders, valuers and solicitors are still open for business. To ensure the safety of our staff the Fairview Financial team is now working from home and we have all the required processes in place to make sure that your remortgage can still proceed as planned without delay. Many lenders have also adjusted their processes offering automated valuations to make sure they can still complete remortgages and our mortgage advisers will be able to pick a lender that is offering this type of service.
- You don’t have to leave your house at all to remortgage. Our brokers can speak to you on the phone, via email and video calls and all the documents we require to assist with a remortgage can be sent in electronic format. So you can continue to stay at home and stay safe while we do all the remortgage work for you.
- You can still remortgage if you have been furloughed. The Coronavirus job retention scheme comes as a great financial support for business, intended to save jobs and keep the economy stable. And the good news is that there are lenders who will accept your remortgage application even if you are furloughed and our advisers will be able to help pick the most competitive lender based on your circumstances.
How much will it cost me to remortgage?
Fairview Financial will not charge you a broker fee so our advice is completely free, you won’t have to pay us a penny. There are also lenders who offer fee-free remortgage options and other incentives such as free valuation surveys and free conveyancing. Some of the fees charged by the lender can also be added to the mortgage loan, let us work out the most competitive options for you.
When should you start thinking about remortgaging?
If you want to make sure that you take advantage of the current low interest rates and your remortgage is due within the next 6 months, you should get in touch as soon as possible.
Why do you need to remortgage?
By switching lenders you may be able to save hundreds or even thousands of pounds a year. Along with lowering your monthly payments you may also want to raise additional capital for home improvements, debt consolidation or a combination of all of these. Please take a look at our page on remortgages for some further handy tips and information.
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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.