21 Nov London – Secure your 2012 Remortgage right now
With impending European gloom and bank stocks bumping along the bottom – things don’t look great right now.
The 2008 crisis saw UK lenders hammered and it’s quite possible Credit Crunch mark II is arriving swiftly.
At that time, those who acted before the disasters unfolded reaped the rewards.
You must know the stories? The friend who tells you that their cleaner now costs than their mortgage? Or the Buy to Let investor who has a rate of 0.51% BELOW base rate? (I know one of these who had 5 properties on this rate, and he got irate when the bank charged him a fee to collect the direct debit!)
Sadly these sort of rates are consigned, for the foreseeable future, to history.
However there are still some great deals out there.
But don’t be fooled. Just because the Bank of England base rate isn’t moving anytime soon, doesn’t mean that lenders won’t hike their rates. In fact there are already signs that they are doing just this.
So is this the moment to get a rate secured? We say yes.
That doesn’t mean you have to complete on the remortgage right now. A mortgage offer will be valid for between 3 and six months. In the latter category include Woolwich, ING Direct, Accord mortgages and Coventry Building Society.
Here’s a final example for you. In January, we found a client a deal, with Santander, of 3.79% fixed for two years. The client wanted to raise some funds for some work to the property, which then didn’t go ahead. Last week they contacted us again – the work is back on. But the rate we found them (their circumstances have NOT changed) is 3.09% fixed for two years again with Santander.
This is typical of how much rates have improved over the course of this year.
We think they could easily get that much worse over the coming months.
So, London, if you’ve got a remortgage coming up over the next six months, now is the time to act.
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