With the first quarter of 2019 now over, we can safely say that the word to sum up these three months is 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 usually want to start the new financial year with a flurry and so as expected we have seen a number of lenders launch 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, especially if you’re currently on a Standard Variable Rate, or equivalent is wise. These types of rates 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 and give yourself a piece of certainty, now might be a good time, as after Brexit, who knows where we will be.