To remortgage or not to remortgage

November 14, 2014 by Brendan O'Neill

Mortgage Advisors

Think back to 2009, when the Bank of England dramatically dropped the base rate to an all-time low of 0.5%, where it has remained ever since. There are still almost three million borrowers who are currently paying their lenders’ standard variable rates (SVR), but by remortgaging, they could save thousands of pounds a year.

As rates tumbled in 2009, lenders reduced their standard variable rates, yet fixed rates remained high. Around four in ten borrowers are currently paying their lender’s SVR, whilst fixed rates are now almost at record lows. Many could actually save money by choosing to remortgage to a new product or lender before interest rates begin their anticipated ascent.

Those with the most equity in their homes will benefit most, as the lower the loan-to-value (which is the amount of mortgage against the property value), the better the deal. Choosing to change to a fixed rate also provides additional security for those who like to budget for their monthly outgoings, and would remove the worry of the ‘what if, when?’ factor of potential rate increases.

It is the duty of qualified mortgage professionals to ensure that all customers receive the best and most suitable advice. Having attended the CeMAP training, and passed the relevant accreditation, you will be able to transfer the skills and knowledge gained to the workplace.

By finding out about what your customer wants and needs, you can build the appropriate mortgage solution, factoring in whether or not it will be beneficial to pay a booking fee for a lower rate of interest, or whether to go for a fee-free option.