12 Oct Supporting Your Mortgage Needs

We are sure that like many around the country, you’ve no doubt seen or heard in news broadcasts in recent days, the changes made to the Bank of England’s base rate, along with the Chancellor’s mini-budget, has thrown curveballs to many with financial responsibilities such as mortgages.

Many lenders have removed deals from the market because current rates have proven unprofitable and therefore lenders are re-pricing all their products.

­That’s where Best4U can help.
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Despite the confusion and noise around the changes to mortgage interest rates, our expertise and industry knowledge are still here for you to access to discuss your mortgage needs.

Your options

If your current mortgage deal is looking to end in the next 12 months, you have some options you can explore now:

If your mortgage is due to end in the next 6-12 months and you are an existing mortgage client, we should have been in touch with you by now but if you haven’t heard from us please do get in touch. Give us a call to look at securing a deal ahead of your deal coming to an end. Some lenders can lock in deals up to 12 months in advance so it might be worth the discussion now and we can secure rates while we wait for your existing lender to produce their options for you which come out anywhere from 4 months to 5 weeks before they are due.

Weigh up your Early Redemption Charges against the higher rates

If you’ve got longer than 6 months on your current deal, the Early Redemption Charges may work out costing you less overall than the higher interest rates that could be in place when your current deal comes to an end.

On a variable or tracker rate?

Once you know your new mortgage rate following the base rate rise, contact us so we can discuss if you ditch, switch and save – and act quickly, as current rates are being rapidly reviewed and increased. This is especially likely for those on standard variable rate (SVR) mortgages.

Unsure of your options?

It can be confusing and unclear what the changes mean to you, but if you’re unsure we’d encourage you to pick up the phone and get in touch with us to discuss your current situation so we can advise on the most suitable options, if you would just like to know what deal you are on (if you are an existing mortgage client) please email back and we will let you know what your rate is and how long you are tied into it.

If you’re struggling to pay

Avoid missing repayments without first speaking to your lender, above all else communicate with your lender. They do not want to get to repossession stage,

With the cost of living increasing, many homeowners are struggling to meet their mortgage repayments. Missing a mortgage payment is known as falling into ‘arrears’. You want to try to avoid this as best you can, as it’ll have a serious impact on your ability to get credit in future.

We understand that you may be concerned or just confused about the details as they emerge, but we are prepared and well versed in industry changes, so are here to assist with any mortgage queries you may have.

Making Overpayments

If you are fortunate to have disposable income currently but are worried about the future, it is worth making a plan and possibly overpaying your mortgage especially if you are on a low fixed rate for a few more years as you can reduce your mortgage during this time so when/if your rates jump up in a few years, your mortgage will be less and the impact will not be so great. If you need advice or want to know how an overpayment will affect your mortgage, please get in touch.

Debt consolidation

It may be possible to get a further advance with your existing lender or a 2nd charge with another lender if you wanted to investigate consolidating unsecured debt to help monthly outgoings reduce, although please be aware you are taking unsecured debt to secured and your house could be at risk. If you would like to explore these options, please get in touch and we can see what we can source for you and enquire with your existing lender.

Final Note

In order to be prepped for any advice please start to obtain 3 months wage slips and 3 months bank statements and if you are self-employed/director please forward your last 2 years tax calculations along with the overviews and 2 years accounts. It is also good to have your credit file to hand to make sure nothing untoward has appeared on there that may cause issues – we recommend Check My File.

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­We know that these uncertain times can be distressing and frustrating. Please get in touch with our experienced and skilled team today if you would like to review your options.