With the average two-year fix now surpassing 6% and further rate rises likely, many homeowners coming to the end of their current mortgage deals may feel overwhelmed with increasingly turbulent and challenging market conditions. So, what should you do if you are coming to the end of your fixed deal? Here are our top tips:
- Don’t panic
The first priority is not to panic. Whether you’re a first-time buyer, remortgaging or even a seasoned BTL investor, the mortgage market can be daunting at times. Instead, at the beginning of your mortgage process, make sure to set time aside to thoroughly research the products available. If you’re midway through the application process, regardless of the changes a lender may make, it’s possible they’ll honour the interest rate you’ve agreed to for six months.
- Speak to a mortgage adviser
It may sound obvious, but don’t go it alone. A mortgage adviser can help you to navigate the mortgage market, supporting you throughout the process right up until completion and beyond.
- Start early
There are many steps in the mortgage application process, and right from the start it’s easy to feel bogged down in paperwork. It’s crucial therefore to have everything ready to go, along with a clear understanding at all times of where you are in the process. For investors it is advisable to always have the necessary paperwork readily available and keep this file up to date.
- Shop around
As with everything in life, it pays to shop around. Although some products are being pulled from the market, there are others available and coming to the market all the time. With higher interest rates, it’s important that first-time buyers and current homeowners who are looking to remortgage shop around.
- Always have a ‘plan B’
If you find yourself in a situation whereby your mortgage product has been withdrawn or is about to be, then take a step back and review your options. In some cases, mortgage advisers will be notified a few hours before a deal is pulled off the market, giving you an opportunity to get your application over the finish line.
At The Property Lifeboat, we will always help and advise landlords and assist where we can.
If you would like some help with any of the subjects covered above or anything else relating to properties or lettings, please email admin@thepropertylifeboat.co.uk
