You don’t need to wait until your current deal expires to do something about it.
Can you really secure a mortgage rate six months in advance?
Some lenders will actually allow you to apply for a remortgage up to 6 months in advance, before your existing deal expires. Locking in a rate early can be beneficial for many reasons, the main one being you could save yourself plenty of cash. If rates continue to increase before your existing deal ends, having already locked in your new mortgage rate will offer you peace of mind knowing you’ve secured the best deal for you.
And what happens if mortgage rates fall? We will review all available products, and where the lender permits, will switch you to a lower rate free of charge, prior to completion.
So whats the difference between a product transfer and a remortgage? Existing lenders may offer you a product transfer if you already have a mortgage with them, usually you can lock these in between 3-6 months prior to your ERC date. A remortgage means switching to an entirely new lender, which comes with a lot more preparation needed, so always allow for the full 6 months if you can for your broker to get this sorted for you.
What about early repayment charges? When remortgage, the new deal very often gets arranged to begin when the existing mortgage ends – avoiding an ERC, providing the timing is correct.
Does securing a rate mean you are committed? Yes and No. You may need to pay upfront valuation costs, but usually nothing is set in stone until much closer to the completion of the remortgage – meaning if you decided to switch lenders, or to a lower rate, you shouldn’t be incur extra charges (depending on the lenders individual stance).
Using a mortgage broker you can rely on can be hugely beneficial during this process. Here at KMS Financial, we lock in you rate, monitor it, and set up alerts if there are any rate changes within your specific criteria so if something better comes along, we are already 2 steps ahead.
This is your sign to get in there early, contact KMS Financial and let us organise your remortgage for you. Book a call today, and lets get you started.