2019 has started as expected, with the main stay being uncertainty. Already we’ve seen three lenders stop lending or pull all of their products due to ‘costs of funding’ and ‘uncertain times ahead’. This is all a bit ‘de ja vu’ compared to back in 2007/8 before the big ‘crash’. However, this time we’re not on the verge of a global recession (hopefully) and once we know what lies ahead for Brexit, things should return to some normality, whatever that may be.
Lenders want to start the year with a flurry and a number of lenders have launched limited edition products. These are short term offers and therefore if you are looking to secure your ‘uncertainty’ for the next three to five years, there are some great deals to be had currently.
It always surprises me how few people actually know what rate they are on, the type of mortgage, i.e., fixed rate, tracker rate, etc, and whether they are paying interest only, or capital repayment. Unsurprisingly, almost everyone knows what it costs per month to the nearest penny! They will haggle for a £10 discount on a new washing machine or sky TV, whilst letting ‘sleeping dogs lay’ when it comes to the mortgage!
It’s very easy when the promotional rate period comes to an end to keep your mortgage with the same lender, ‘brush it under the carpet’, and deal with it ‘tomorrow’. But, we all know tomorrow never comes. A review of what’s on offer from other Lenders could give you a nice start for 2019, especially if you’re currently on a Standard Variable Rate, or equivalent. These tend to be a lot higher than what’s available in the market place.
Many Lenders are offering superb remortgage opportunities with minimal costs to change, including free standard valuations and some with legal costs. Rates are competitively low and mortgage product choice is at its highest for some time.
If there’s ever a time to review all options, now might be a good time, as after Brexit, who knows where we will be.