Should you re-mortgage early?
Many of us have opted to fix our mortgages in the past with the aim of being able to budget for a set term. A mortgage is often our largest outgoing, so it makes sense to remove the possibility of large increases in our monthly expenses.
We may feel that we have made a pretty good deal and may be content to let the mortgage run to the end of the fixed term before looking to re-mortgage. However, with the reduction in the Bank of England’s base rate earlier this year to a historic low it may well be worth considering re-mortgaging early.
Fixed rate mortgages
Most fixed rate mortgages will have an early repayment charge (ERC), however it is often possible to pay this charge and fix at a lower rate making a saving over time.
Of course, its important to make the calculations to make sure that it is worth your while renegotiating your loan.
Be money wise
Any money that you are able to save on your mortgage could be redirected to other priorities such as for example, building up an emergency fund, or towards saving for your future via a pension.
If you would like help or advice concerning your mortgage, please contact our team on 01903 534587.