Around 140,000 homeowners have mortgage deals which are due to mature this April, so if you’re one of them it’s worth looking into remortgaging as soon as possible.
Almost £21 billion of loans are set to mature in April, according to recent industry data, representing 11% of the £184 billion of mortgage maturities this year. The only month with a higher maturity value is December, when mortgages worth £25.6 billion are due to mature.
Borrowers with mortgage deals finishing in April 2020 could save an average of almost £150 on their monthly mortgage payments by remortgaging, according to research by Leeds Building Society.
You don’t have to wait until your current mortgage deal finishes before you can start looking for a new deal, as many remortgage offers are valid for between three and six months from the date they’re issued. Securing your next mortgage in advance means that you can make a smooth transition from one deal to the next, without having to move onto your lender’s standard variable rate.
Top tips when remortgaging
When remortgaging, there are several important things to remember:
• It’s worth checking with your existing lender to see what they can offer first, but make sure you shop around with other lenders as well so that you can be certain you’ve found the best possible deal to suit your needs.
• If you’re coming to the end of a longer term mortgage deal, perhaps for example a five-year fixed rate deal, and property prices have risen in the area where you live, you may find you now have a greater proportion of equity in your home and therefore qualify for a wider range of mortgages at low rates.
• Make sure you look at the overall cost of any deal including any arrangement fees, rather than choosing a mortgage on the basis of the headline rate alone. As a general rule, if you have a large mortgage, a deal with a lower rate and higher arrangement fee may be more cost-effective than a deal with a lower arrangement fee and a higher rate.
• You’ll also need to factor in legal costs and a mortgage valuation fee when you remortgage, although many lenders offer deals which cover these costs as part of the package.
Cut monthly costs by remortgaging