In the current pandemic situation, when everyone is looking forward to meeting their end needs, mortgage loan is a smart decision to curb ongoing financial crisis and move out of this critical situation.
Where some of you might be looking for a fresh mortgage loan, many are considering mortgaging due to multiple reasons. Before we dive into remortgaging consideration, let’s take crisp information about remortgaging.
The shortest definition of remortgaging is migrating to other lenders or negotiating with the existing one in search of a better deal. Multiple reasons like rising cash, high-interest rates, reduced payments, etc. contribute to the demand for a new lender. In either case, you are always suggested to take remortgaging advice prior to any action.
Now, look at the reasons when borrowers prefer remortgaging:
To get a better rate: When you are not satisfied with the current interest rate, migrating to other mortgage options is a wise step. Furthermore, if your mortgage period is soon going to an end, you would prefer remortgaging to bring your financial crisis at stability. In either way, looking for the lowest interest rate is what you need, and remortgaging can help you in this concern. You can either take advice for a right mortgage loan or use a remortgage calculator to find a better deal.
Debt consolidation: Another big reason why most people prefer remortgaging is consolidating their debts and brings them under one roof. Many borrowers have multiple debts that distribute their debts and repayment options. Instead of different repayments, people prefer debt consolidation so that repayments can be made without fail.
Home improvements: Borrowers even consider remortgaging to boost property value. Home improvement is the best way to increase your resale value, and hence borrowers look for a better deal that can benefit them in the future.
Changing financial situation: Many situations in human life bring troubles and make it tough to continue with the current mortgage options. In difficult conditions, you always ask your lender for a better deal with a low-interest rate that can help you financially and give support to meet your end needs; until everything is on track.
Equity release: Not many know, equity release is a smart way of releasing your home from mortgage security and get a better value. The increased property value gives you the option to search for a remortgaging option.
Want more money: In many situations (like ongoing pandemic), people ask for monetary support and get more money than usual. But if your current lender isn’t offering you additional sun, it’s time to find another lender who will provide more sum as per the need and fulfil your requirements.
The million-dollar question is, should you look for remortgaging in this critical and pandemic situation?
Is Covid-19 pandemic the right time to consider remortgaging?
In the ongoing pandemic situation, the market has experienced a drop in demand that has even dropped the mortgage rates in the United Kingdom.
E.g., the mortgage rates by the Bank of England have cut its base rate to 0.1% (as on March 19th) which is the lowest it has made in the last 325 year’s history.
It symbolizes that borrowers have a golden period to get an excellent mortgage deal as well as substantial financial support. Among all, borrowers, who have soon-to-end mortgage loans, are looking further for a cheaper and exciting deal. Moreover, other borrowers who are relying on SVR (Standard Variable Rate) are also looking for a better opportunity to lessen their repayment burden and get financial strength.
But does this mean, you can apply for remortgaging?
In the current scenario, where the market is near to crash in many aspects, lenders are not considering it the right time to offer mortgage options to their customers. Hence, many lenders have to step back their mortgage products to curb the damage caused by coronavirus.
Moreover, under the current situation, borrowers with low-equity value have a hard time to find the right remortgaging option. On the other hand, people with high equity value are given broad mortgage alternatives.
Undoubtedly, many mortgage lenders are still offering options to new and existing customers.
Remortgaging advice is the key!
The current lockdown period during the Covid-19 pandemic has hit the economy hard, and it will take a few months to settle on track. Till then, you are highly recommended to take proper advice from professional remortgaging experts.
Remember, proper research is appreciated before taking any step. Your one-time mistake can not only increase your debts but also damage your financial backup.
Stay safe & Select smart.
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