Are you due to remortgage in the next 12 months? - 07.10.08

Author: Michael Aglony Posted on: 07 October 2008

Are you due to remortgage in the next 12 months.....

I would advise anyone who is remortgaging in the next 12 months to start looking for their new mortgage at least 6 months before their current rate is due to expire, with banks and building societies struggling for funding the availability of competitive mortgage rates will shrink in the coming months.

Many Lenders’ mortgage offers are generally valid for periods of between 3 and 6 months, so securing a rate in advance is a feasible option.
 
Another point to bear in mind when thinking about the right time to remortgage is property values. Recent reports confirm that property values are still falling and are expected to continue this way for the coming months.

Therefore borrowers who today will qualify for a 60%, 75% or 90% Loan to Value (LTV) rate are likely to find that in 3 or 6 months time a fall in their property value will take them above LTV they would qualify for today and would mean the borrower incurring a higher interest rate.
 
Anyone in this position should talk to us now, especially if you are already close to the 90% barrier, as anyone needing more than 90% is unlikely to find any rate worth remortgaging to in the near future.