A key part of managing your finances effectively is to continually review your mortgage. This is especially important if you are remortgaging in 2023 and your mortgage deal is due to end soon. Call our expert mortgage advisers on 01462 510 400 for personalised mortgage advice.
Contact Fortune Financial at least 7 months before your mortgage deal ends
We encourage you to contact our mortgage broking team at Fortune Financial in Hitchin as early as 7 months prior to your fixed, tracker or variable product deal ending. Calling us plenty of time in advance gives you time to secure a new mortgage rate, get an offer and transition easily from one product to the next.
If you don’t organise a new mortgage deal you will pay your lender’s standard variable rate
Without being proactive, you could find yourself reverting to your mortgage lenders standard variable rate when your mortgage deal ends, which is likely to be significantly higher than the mortgage deal that is ending, resulting in you paying more interest and increased monthly payments.
Why your existing lender might not offer the best remortgage rate
Many customers think their existing lender is the best option for a remortgage. In most circumstances, this is not the case and keeping loyal to a mortgage lender might mean you miss out on better mortgage deals elsewhere. It is important to receive mortgage advice from an experienced mortgage broker. We understand the mortgage market and continually review mortgage lenders and their products. This enables you to find the most cost-effective mortgage product to suit your circumstances. During this mortgage process, our mortgage brokers will ensure you make an informed decision, as we tailor your ongoing mortgage to your financial requirements.
There are many considerations when you choose your mortgage, not just the interest rate
Many customers consider the lowest interest rate is their best mortgage option, but this is not always the case. Lenders offer various products which have either no fees, product fees or even sometimes added costs, for example valuation or administration costs. A good mortgage adviser will make you aware of the true and total cost of any new mortgage, including the above fees and all the interest incurred over the product period, whether this is for a 2, 3, 5 or even 10-year mortgage term.
Mark Seddon, Director, and Mortgage Broker in Hitchin said:
‘Over the last few years, we have witnessed record low interest rates, with fixed rate mortgages below 2%. That gave customers the ability to either significantly reduce monthly payments or alternatively reduce their mortgage term, so they could reduce their mortgage balance faster by repaying interest and capital. The rates we experienced were 300-year all-time lows.
As we enter 2023, mortgage rates have risen back up to what we call average rates, between 4-6%, sometimes higher, depending upon our customer’s circumstances and the ability to meet the lenders mortgage lending criteria.
In the final quarter of 2022, many mortgage lenders increased rates on a regular basis. However, the positive news is that mortgage lenders, paused, took a breath, and decided to come back to market with a larger reprice which brought mortgage rate rises to a stop. Now early in 2023 we are witnessing reductions back down to sub 5% rates.’
What to do if you secured a sub 2% mortgage rate and your mortgage ends in 2023?
Mark Seddon, Director, and Mortgage Broker Fortune Financial Hitchin continued:
‘If you previously managed to secure a sub 2% rate, then sadly there’s a strong possibility your mortgage product could be coming to an end in 2023, so your search for a new mortgage needs to commence now or shortly. So, this is what you need to do if you’re coming off this product.’
Next steps if your mortgage deal ends in 2023 and you need mortgage advice
- Initially, I would encourage you to check your product end date, as this will give you confidence in when to make these next steps.
- If your product is ending within 7 months, then book an appointment with your Fortune Financial mortgage broker to discuss what mortgage options are available for you moving forward. The reason for this is a mortgage consultation, new application and underwriting takes time, approximately 4 weeks before a new mortgage offer is issued.
- Once the mortgage offer is issued, you have 6 months to complete and switch to your new mortgage lender or product. This proactive approach gives you peace of mind that you have secured the best product for your situation.
- A good mortgage broker will continue to monitor the market to inform you of any product improvements. If mortgage products do improve, in most circumstances it’s an easy switch to amend the offer or move to the new mortgage lender.
- Essentially, it’s a win win situation, you have a product ready for point of remortgage, plus the ability to still monitor the mortgage market, it’s full-on peace of mind.
- Remember that most existing mortgages come with an early repayment charge if you switch early, prior to the product end date, so in the current market we are unlikely to recommend this because rates have increased so you will want to take advantage of your current sub 2% rate for as long as you can.
In Summary
In 2023, it’s about being pro-active! At Fortune Financial in Hitchin, we would advise speaking with our mortgage adviser, who will offer you professional mortgage advice, so you make an informed decision about your mortgage needs. Mortgages are complicated so a good adviser can explain mortgage products and rates and find you the best mortgage lender, based upon your circumstances.
If you would like to arrange your mortgage consultation, please contact our mortgage team in Hitchin Hertfordshire, who will review your circumstances and provide a personalised mortgage recommendation.
We can offer a face-to-face appointment at our mortgage shop on Bridge St, Hitchin, or alternatively a remote appointment via telephone or Zoom. Our mortgage broking team work with customers in Hertfordshire, Bedfordshire, Essex and London. Please either complete our website contact form, call 01462 510400 or email info@fortunefinancial.co.uk we would love to help.
Mark Seddon
Director and Mortgage Adviser, Fortune Financial, Hitchin
The information contained within was correct at the time of publication but is subject to change. Your home may be repossessed if you do not keep up repayments on your mortgage.
