Thousands of fixed rate mortgages are due to mature in the second half of 2021, so now’s the perfect time to start looking for a new deal, especially with rates as low as they are right now. Recent weeks have seen several lenders introduce two-year fixed rate deals below 1%, with many five-year deals also nudging closer towards 1%. According to Yorkshire Building Society, more than £29billion worth of residential mortgages in the UK are due to mature in October of this year. Lenders’ mortgage offers will typically be valid for three to six months, so if your fixed rate is finishing soon, it’s well worth seeing if you can take advantage of current rock-bottom rates. Product transfer numbers are also expected to rise, with UK Finance at the end of last year predicting that this type of business would rise to a massive £181bn in 2021. A product transfer is when you move from your existing mortgage deal to a new mortgage, but stay with the same lender. If you’re worried you might not be able to remortgage because you’ve been on furlough, or your income has fallen due to the pandemic, your existing lender may still be able to help, even if you can’t meet the criteria of a new provider. That could offer an alternative option to standard variable rate for those that have kept up with their mortgage payments. Even if your finances haven’t been affected by coronavirus, it’s still worth comparing what your existing lender can offer you to deals you might be eligible for from a new lender. You can compare mortgage deals here, or talk to one of L&C’s mortgage advisers who can research the best options for you from across the market as well as from your current lender.
Mortgage options for landlords
Regularly reviewing any Buy-to-Let mortgages you might have is just as important as reviewing your residential mortgage, especially as it’s five years ago since the Stamp Duty surcharge on second homes was introduced. Many landlords locked into five-year fixed rates at this point, in order to provide themselves with budgeting certainty. A spate of tax changes followed the Stamp Duty changes, making it even more crucial for landlords to manage their costs carefully. For those keen to remain on a fixed rate when their current deal finishes, there’s a wide range of options and a small number can even offer fixed rates without Early Repayment Charges. This means that if your circumstances change, you’re free to move to a different deal. If you’re not sure which Buy-to-Let mortgage to go for, or which deals you might be eligible for, contact L&C and we’ll help you find the right deal to suit your needs.
