Can I change my mortgage deal if rates go down before I complete?
After a decade of low rates and relative calm in the mortgage market, the past eight months have been tumultuous.
Following last year’s disastrous mini Budget, mortgage rates went up at an alarming pace with some rising above 6%. Many predicted that this was just the start and that rates would continue to climb.
As a result, many homeowners that were nearing the end of their fixed rate mortgage moved fast to lock into a new deal in advance before rates went up again, as this can be arranged up to six months before your rate ends.
However, as the initial panic died down and a change in government brought back some confidence in the economy, the mortgage market started to steady and rates stabilised. Even when the Bank of England put the base rate up again in December, lenders didn’t react. In fact, there have been new more competitive rates and deals coming on to the market every week.
So what can you do if you have already signed up to a new arrangement and rate, whether as a new mortgage or new deal on your existing one, which can’t compete with some of the newer offers?
Can I change my mortgage deal?
In principle, with most lenders you are not fully committed to a rate or product until either you complete, if you are buying a home, or until your rate comes to an end, if you are remortgaging. There are some exceptions which is important to note when looking at new deals.
Different lenders have different terms and conditions on switching rates which may incur fees and could impact on your completion date, especially if you are required to start the application process again from the beginning. And this may become even more complicated if you are looking to change lender altogether.
How can I make sure I get the best deal at the right time?
Knowing when you have the best deal is a lottery, even with the experts sharing their predictions on interest rates, nothing is set in stone, so using an experienced independent mortgage broker can be invaluable.
A good broker will be constantly watching the market, be fully informed of all latest deals from every provider and will be able to move quickly for you.
They should manage the mortgage application for you to speed up the process and advise of any additional fees upfront so there are no nasty surprises, whilst continuing to track the market for you, right up until you’re due to complete on the remortgage or product transfer.
Seeking professional advice
At Mother Goose Mortgages, we have over 20 years of experience in mortgages, and will give you the expert advice and guidance you need. We always secure the best and most suitable deal for you and your situation – advising you throughout the process.
As a member of one of the UK’s largest award-winning mortgage networks, we can offer you a comprehensive range of mortgages from across the market at the best rates, in addition to exclusive mortgages not available from high street banks and building societies.
If your mortgage rate is due to end in 2023 or you have any questions about your existing deal or rate, talk to us today on 01892 862534.