Is now a good time to re-mortgage

Posted by Sharon Yewen in Mortgages on 24 January 2013 - Sharon is Financial Controller at checkmyfile.

It used to be good financial advice to re-mortgage every few years in order to get the best deals available and save money on monthly mortgage payments. During the last few years with cheap Standard Variable Rates (SVRs) following cuts in the Bank of England’s base rate, there has been not much point in swapping lenders and many borrowers have been happy to remain where they are, especially after taking into account the fees (arrangement fees, valuations, legal costs and more) incurred in re-mortgaging.

Recently though, the Council of Mortgage Lenders has predicted that the slump in re-mortgaging seen last year will be reversed in 2013.

There could be a number of reasons why re-mortgaging your home may become beneficial.

Some lenders have already started increasing their SVRs in 2012, thereby increasing monthly mortgage payments; if this trend continues then it could be the case that a cheaper deal could be found elsewhere.

Lenders have started to launch some new competitive rates and deals in order to encourage borrowers to swap to them.

Re-mortgaging to a fixed rate is a way of protecting yourself against future interest rate rises and has the added benefit of making monthly budgeting easier. There is no guarantee that the Bank of England base rate will remain low.

Many borrowers have been able to take advantage of the low SVRs by making mortgage overpayments. The CML reports that one third of all borrowers have overpaid on their mortgage since 2005. This reduces the capital balance and cuts interest due, thereby potentially saving thousands of pounds over the mortgage term.

It is wise though to check the extent of the flexibility on individual mortgage products as some may not allow overpayments, or if they do may charge a penalty, others may allow limited overpayments whilst some may be very flexible and allow unlimited payments.

The Government’s recent Funding for Lending Scheme, which makes cheap funds available to lenders on condition that they do actually lend the money, has ensured that better rates are available to lenders with low equity levels.

This opens up the re-mortgaging option to those who couldn’t switch previously due to insufficient equity.

Now might be the time to start investigating the market again to see what suitable mortgage deals are popping up.

Sharon Yewen is Financial Controller at Checkmyfile. She is an FCA and has a degree in accountancy from the University of Exeter. You can contact Sharon at

Last minute mortgage checks

When could a non-bankrupt person be considered bankrupt? When they’re buying a house.

Published on 17 Jan 2018 by Richard Catlin

Full Article

Guarantor loans can affect mortgage applications, lenders warn

Guarantor lenders are always keen to point out that you don’t need a credit report check to get their loan, just a friend or family member who has a good credit history and is able to act as a guarantor. For those with a poor credit rating, this type of loan provides a solution to a problem – they can afford the loan repayments but are unable to get credit due to prior adverse credit history.

Published on 9 Jan 2018 by Kelly Luff

Full Article

How your credit file could help you get a good mortgage deal

There have been plenty of reasons to get people thinking about making that first leap onto the property ladder in recent months, including Help to Buy schemes, the recent removal of stamp duty charges for about 95% of first time buyers and an increase in affordable houses being built.

Published on 29 Dec 2017 by Kiah Phillips

Full Article

The best credit score for a mortgage

A lot of customers come to checkmyfile because they are planning on applying for a mortgage – your credit report is, after all, the best place to start is it’s helpful on more than one occasion . But often the question is often asked: “what credit score will get me the mortgage I need for my dream home?”

Published on 16 Feb 2017 by Kelly Luff

Full Article

Homeownership among 25 year olds halved in 20 years

Homeownership among 25 year olds has more than halved in the last 20 years, according to a survey conducted for the Local Government Association (LGA). The study carried out by Savilles the estate agents found that only 20% of 25 year olds now own a home of their own, compared to 46% in 1996.

Published on 5 Jan 2017 by Erika Bone

Full Article

Housing Values Rise to 5.6 trillion

While housing prices have displayed a consistent rise over the past several years, according to a recent study conducted by Halifax, the total value of privately owned housing in the UK has exceeded £5.5 trillion for the first time.

Published on 14 Dec 2016 by Tom Magor

Full Article

First-time lenders can borrow against parent's home

In recent decades, the “bank of mum and dad” has increasingly become a cardinal resource for their offspring achieving independence and for first-time buyers attaining a foot on that all-important first rung of the property ladder.

Published on 9 Dec 2016 by Erika Bone

Full Article

Buy to let slows as mortgage rate offers begin to increase

In the last few years we have not only seen some historically low mortgage rates, but also a rush to make property investments. Now the tide may finally be turning, as lenders begin to increase their lowest mortgage rates, and buy-to-let figures drop in the wake of new regulations.

Published on 7 Dec 2016 by Kelly Luff

Full Article

Mortgage costs reach record low

The cost of obtaining a mortgage could be in reach for first-time buyers, as rates drop to a record low.

Published on 16 Nov 2016 by Simon Hadley

Full Article

Surge in House prices recorded in October

House Prices shot up in October, showing a monthly increase of 1.4%. This is according to Halifax’s house price index, which showed its largest monthly rise since March. The growth was well up on the 0.3% recorded by Halifax in September and is in contrast to the signs of a slowing housing market recorded in its index over the last 6 months.

Published on 10 Nov 2016 by Neil Greenhill

Full Article


We have loads of great customer reviews