As we approach the end of 2024, many homeowners are facing the need to remortgage. If your mortgage deal is coming to an end soon, it’s essential to start planning now. Acting early can provide you with a wider range of options and prevent the stress of last-minute decisions.
Why Timing Matters
Starting your remortgage search early is crucial. Mortgage rates and products can change frequently, so the sooner you begin exploring your options, the better your chances of securing a favourable deal. Waiting until the last minute could limit your choices and lead to a rushed process, increasing the likelihood of missed opportunities and increased cost on payments.
Consider Overpaying Your Mortgage
If you’re still on a low fixed-rate mortgage for the next few months and have some flexibility in your budget, consider overpaying your mortgage now. Overpaying reduces your outstanding balance, which can be beneficial when you're mortgage. Not only does it help you pay off your mortgage faster, but it could also move you into a lower loan-to-value (LTV) bracket. However be aware of Early Repayment Charges, which are fees you may encounter if you overpay more
than a certain amount on your loan. Lenders often offer more competitive rates
to those with a lower LTV, potentially saving you money in the long run.
Build a Cash Buffer
If overpaying isn’t an option, consider building a cash buffer instead. With mortgage rates higher than in recent years, having some extra savings set aside can help cushion the impact of increased monthly payments once you remortgage. This financial buffer can provide a smoother transition to higher payments.
Take Action Now
While there’s speculation that the bank rate may drop further, it’s uncertain when or if it will happen again soon. By acting now, you can take control of your financial situation and avoid the risk of being caught off guard by future rate changes. Planning your remortgage ahead of time allows you to explore the best options, potentially save money, and ensure a smoother process.
To discuss the options available to you and how remortgaging could impact your financial plans, get in contact today.
Teddy James Mortgage Solutions are an Eastbourne based mortgage advisors offering friendly, honest, fee free mortgage advice.