2016 Remortgage

Did you set a new years resolution to sort your mortgage out in 2016? Is 2016 remortgage time? Many of us did and just like 2015, lots of us will not get round to sorting it until we have potentially missed out on the best remortgage deals.

A recent piece of research by TSB has shown that many British property owners are unprepared for an interest rate rise in 2016.  Whether this is because they have got used to the rate they have been on for a while now, or maybe because they feel that they can handle the increased payments within their current budget.

The research then goes on to suggest that rise in mortgage interest rates will see a staggering 72% of homeowners see their monthly payments increase.  This suggests that they are currently sitting on their lenders standard variable rate or SVR having opted to do this when their original fixed or discounted rate ended.

And with 56% of people saying they are already struggling with household bills, any change to their monthly payments can only make things worse.

How does this effect you and your own circumstances? 

You could react to this increase by looking to take a new 2016 remortgage deal with your lender.  This could be a good idea if they will allow you to take a new product because you have continued to meet their lending criteria, and have not picked up any bad credit along the way.

Timing will also be vital because once the banks get a sniff that the base rate is increasing, they will have changed their rates long before you get to hear about it and can react.  The rate you are going to pay then, could be higher than the one you could secure today.

What is the sensible thing to do with all of this?

Knowing your options is everything when it comes to your finances.  Even if your financial situation allows for a rate increase to be manageable, wouldn’t it be nice to be paying less than you currently are because you are eligible to?  Lenders are still hungry for new business and offering good deals is very much still on their agenda.  Checking your options is simple and can be done by speaking to one of the qualified FCA Advisors that we work with at Get in touch. .

I have spoken to my bank and they will not offer me anything other than what I am on.

Again, the first thing to do is not panic.  2016 is going to see a continuation of lenders being strict with their criteria to existing clients.  If you have been with the same bank for a while now, you may not have experienced the new rules that have been applied to obtaining a mortgage.  Your credit file, affordability and financial conduct are all going to play a big part in whether you are going to get a positive reaction to your request for a new deal.  You may just not meet their new lending rules.

That new deal therefore may sit with another lender.  Every lender looks at the rules in a slightly different way and each lender has its own view on what sort of customer they are looking to lend money to.  It may be that your lender will not lend to you if you have any form of poor credit such as a default or CCJ, others are more than happy to because its in their lending criteria. Again, by leaving your details at Get in touch you can start to look at what else may be available to you.

If nothing else your 2016 remortgage is one new years resolution ticked off leaving you to cut back on alcohol, stop smoking and get down the gym more….!!!!