As a homeowner in Northern Ireland, one of the most important financial decisions you’ll make is selecting the right mortgage. Many people opt for fixed-rate mortgages for the stability and predictability they offer. However, as your fixed-rate term nears its end, it’s essential to plan ahead and consider re-mortgaging. In this blog, we will explore why it’s crucial to start the re-mortgaging process six months before your current fixed rate expires and how it can benefit you as a homeowner in Northern Ireland.
Seize Better Interest Rates
Interest rates play a significant role in your mortgage repayments. As the economic climate fluctuates, so do interest rates. By looking into re-mortgaging six months before your fixed-rate term concludes, you give yourself ample time to research and lock in a better interest rate. Even a slight reduction in interest can save you a considerable sum over the life of your mortgage.
Avoid the Standard Variable Rate (SVR)
Once your fixed-rate term ends, your mortgage typically moves to the lender’s Standard Variable Rate (SVR). This rate tends to be higher than the fixed rate you were previously paying. By proactively exploring re-mortgaging options before this transition, you can avoid the potential spike in your monthly payments and secure a more favorable rate.
Provide Ample Time for Paperwork and Processing
Re-mortgaging involves paperwork, financial assessments, and processing time. By starting the process six months ahead, you give yourself the luxury of time to gather all the necessary documents, complete the application, and allow the lender to carry out the due diligence efficiently. This ensures a smoother re-mortgaging experience without unnecessary stress or rushing.
Evaluate Your Changing Financial Situation
Over the course of your fixed-rate term, your financial situation may have changed. You might have received a pay raise, paid off debts, or acquired new assets. These factors can influence the mortgage options available to you. By starting the re-mortgaging process early, you can accurately assess your financial standing and explore new mortgage products that align with your current circumstances.
Access to a Wide Range of Mortgage Products
The mortgage market is dynamic, with new products and deals regularly introduced. Initiating the re-mortgaging process six months ahead allows you to tap into a broader range of mortgage products. Your mortgage broker can help you navigate through various options, such as offset mortgages, flexible mortgages, or cashback deals, tailoring them to your specific needs.
Benefit from Professional Mortgage Advice
A knowledgeable mortgage broker based in Northern Ireland can be an invaluable asset during the re-mortgaging process. They understand the intricacies of the local housing market and have access to exclusive deals. By giving yourself enough time, you can schedule appointments with a broker, discuss your goals, and receive expert advice on the most suitable re-mortgaging options for you.
Account for Potential Delays or Hurdles
Re-mortgaging may encounter unforeseen delays or hurdles, such as property valuation discrepancies or credit report issues. By starting the process early, you have room to address and rectify any problems that may arise without jeopardizing the transition from one mortgage to another.
Protect Against Rate Fluctuations
Economic conditions and geopolitical events can significantly impact interest rates. By beginning the re-mortgaging process six months prior, you can secure a fixed-rate deal before interest rates potentially rise. This financial prudence shields you from uncertain market conditions and offers peace of mind regarding your mortgage repayments.
Maximize Your Equity
Over time, your property’s value may have increased, leading to an increase in your home equity. Re-mortgaging allows you to access this equity through equity release or increasing the loan amount. This extra capital can be used for home improvements, debt consolidation (think carefully before securing other debts against your home. Consolidating debt may reduce your outgoings now, but you may end up paying more overall. Your home may be repossessed if you do not keep up repayments on your mortgage) or other investments, improving your financial position.
In conclusion, re-mortgaging is a crucial step that every homeowner in Northern Ireland should consider as their fixed-rate term approaches its end. Starting the process six months early provides several advantages, such as accessing better interest rates, avoiding the SVR, and accounting for potential delays. Moreover, it allows you to evaluate your financial situation, benefit from expert mortgage advice at Complete Mortgage Solutions NI, and secure the most suitable mortgage product for your current needs. By taking a proactive approach to re-mortgaging, you can save money, gain financial flexibility, and enjoy greater peace of mind in your homeownership journey. Consult a reputable mortgage broker in Northern Ireland to begin your re-mortgaging journey and secure a brighter financial future.
If you are to re-mortgage before your fixed rate ends you may be subject to an Early Repayment Charge by your lender. Seeking professional advice from a mortgage expert should prevent charges like this or the charges being fully explained to you. This will ensure you understand the re-mortgage process and give the ability for you to ask questions to an expert.
The information contained within was correct at the time of publication but is subject to change.
Your home may be repossessed if you do not keep up repayments on your mortgage.