However, leaving it until the last minute to review your options could prove a costly mistake, as it might mean that you miss out on more competitive deals that are available now.
Here, we look at some of the advantages of reviewing your mortgage options sooner rather than later if your mortgage is due to mature in the next few months.
Why review your mortgage options now?Mortgage offers are typically valid for six months so if, for example, your current deal is due to mature in December, you can secure your next rate now.
This means that if rates continue to rise in coming months, you’ll have peace of mind that you’re protected from these increases as you’ve already pre-selected your next mortgage.
If, however, interest rates come down in between you getting your mortgage offer and the date your current mortgage matures, you can review things again and see whether an alternative mortgage deal might be more cost-effective. If you find a better mortgage deal, you can simply cancel your existing offer and you won’t have lost anything, as there usually isn’t a fee to pay if you withdraw before the deal starts.
Some lenders will allow you to move onto a different rate with them if rates have come down, but not all will, so you may have to go with a different lender if they don’t offer this flexibility. Bear in mind that if you do move to a different lender, you will need to go through affordability checks again.
Where can I find my next mortgage?A good starting point when you’re looking for your next mortgage deal is to do your research and shop around.
If you’re not sure which is the most cost-effective option for you, then it’s worth seeking professional advice from a broker like L&C. We can access deals from right across the market, and we’ll also check what your existing lender can offer you, to ensure your next mortgage is the right one for you.