12 Apr, 2020/ by Homeward Legal /Remortgage

On the 19th March, The Bank of England lowered its base rate to an all-time low of 0.1%. We've heard the word ‘unprecedented' being used multiple times throughout the current Coronavirus crisis, but this really was just that. From highs of 13% in the late 80s, this represents quite the turnaround. You may have found yourself asking whether or not you can remortgage in this current climate, and the answer is most certainly yes. This particular property transaction is one that can keep moving during the current coronavirus crisis as e-signatures will enable the process to progress without the need for face to face contact. Most lenders won't require searches to be carried out for a remortgage, however we advise that you check with the lender in question. Loans, credit cards and mortgages are the cheapest they've ever been, so it could be the time to save some money on your monthly repayments by remortgaging. Very rarely do homeowners stay on one mortgage deal for the entire term, switching to new deals when fixed rate periods come to an end and in line with budgets and requirements. However, you'll want to check the small print on your current deal carefully first as there could be a hefty fee for switching early that cancels out any potential savings. When considering whether to remortgage, ask yourself the following questions:

  • Is my current fixed rate deal up for renewal?
  • Is there a better rate out there than what I'm currently on?
  • What is it about my current deal that I want to change?
  • Is my current fixed rate deal up for renewal?
  • Do I want to borrow more money?

My current deal is up for renewal
Once your 2, 3 or 5 year fixed rate comes to an end you'll be switched to SVR (standard variable rate), so in order to avoid this you'll want to look at remortgaging ahead of the fixed period's ending date.

I want to be on a better rate
Of course you do! With the lowering of the base rate, mortgage interest rates have also come down. With rates unlikely to rise anytime soon, it might be a worth looking into a tracker mortgage that is based on the BoE rate plus the lenders' own interest. However, those looking for certainty in these uncertain times would do well to fix their mortgage rates for as long as possible, ideally with a five year fixed deal.

There are elements of my current deal that I want to change
You may be looking to remortgage in order to take advantage of more flexible baked-in options than your current deal. These may include the option to port your mortgage (i.e. carry it over to your next property), an option to make overpayments or lower fees associated with remortgaging again in the future. On that note, be sure to check what the early exit charges are and weigh this up against potential savings.

I want to borrow more money
Remortgaging can allow you to access more money for home improvements and extensions. Again, weigh up the charges you'll pay for an early switch and assess whether it may be cheaper to get a home loan. Once you've covered all of these elements and found the right deal for you, now is absolutely the time to remortgage, given the all-time low BoE base rate of 0.1%. Click on the remortgage symbol below to get a quote for the cost of remortgage conveyancing and to get the ball rolling from a legal perspective.

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