Hayley Croft, Lichfield mortgage broker - Tips for anyone remortgaging in 2023

Thursday 17 August, 2023

If you are remortgaging in 2023 it’s more important than ever to make the right mortgage decision as it is likely that if you have a two-, three- or five-year fixed rate mortgage your new remortgage rate will be substantially higher than your current mortgage deal.  

Call your local Lonsdale mortgage broker now or complete our booking consultation for mortgage advice.  

Take action

Don’t automatically accept a new offer from your current mortgage lender before checking out other available mortgage options.  For most of our customers a mortgage is their biggest monthly outgoing, so it is worth investing time in finding the best mortgage deal.  There are things you can do. We recommend calling your local Lonsdale mortgage broker for mortgage advice.  Our mortgage brokers can discuss your mortgage options, research the mortgage market, check affordability and agree an early mortgage deal.

Research the mortgage market

During 2023 the Bank of England has continued to put up interest rates because UK inflation is too high. On 17/8/23 the average two-year fixed rate mortgage was 6.76% and the average five-year fixed rate mortgage was 6.25%.  Although these rates have reduced slightly since July 2023, they remain relatively high compared to the last five years. 

Check your own financial situation hasn’t changed

Given the substantial increase in mortgage rates it is important to prepare for your remortgage as early as possible, so you understand your choices.  There are many actions you can take well before your remortgaging date.  You can check your credit score and your salary as your mortgage lender will check affordability and perform a ‘stress test’ to check you can still repay your mortgage, even if mortgage rates are higher.  You can also consider what type of mortgage you want, do you want to take out another fixed rate mortgage or a variable rate mortgage.

Get a mortgage agreed 6 months before your remortgage ends

If your mortgage deal is maturing in 2023 or early 2024 call our mortgage broking team now for mortgage advice. Our mortgage brokers in St Albans and Lichfield can arrange a new mortgage ahead of your mortgage ending.  Most mortgage lenders will honour a mortgage for up to six months.  This gives you peace of mind that you have a mortgage option agreed if mortgage rates increase before your mortgage ends.  If mortgage rates fall within the six months our mortgage advisors can review the market and arrange a new mortgage deal with better rates.

Hayley Croft, mortgage broker in Lichfield said:

‘Using a local mortgage broker will help you save time as we can review the mortgage market to find you the best remortgage deal.  If is often tempting to just remortgage with your current mortgage provider but it might be more expensive.  Acting early means you have enough time to discuss your mortgage options and get all your paperwork together.  We can complete any new mortgage application and liaise with your mortgage lender, so you quickly get your mortgage deal agreed in principle.  If you secure a mortgage offer well ahead of your remortgaging date it will give you peace of mind of your future mortgage repayments.  If you don’t take any action ahead of your fixed rate ending you will automatically be put on your mortgage lender’s standard variable rate, so we recommend you get in touch now.  

In Summary…

Call your Lonsdale Mortgages broking team in Lichfield and St Albans for personalised mortgage advice and protection cover.  Alternatively complete our booking consultation form and a mortgage broker will contact you.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments.  The information contained in within this article is for guidance only and does not constitute advice which should be sought before taking any action or inaction. The Financial Conduct Authority do not regulate some forms of buy to let mortgages.

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