04 Apr Ask Alextra
What Does the Current Economic
Climate Mean For Homeowners?
Welcome to Ask Alextra, where we give you answers to the most pressing money questions from our very own in-house experts.
In this edition, we sit down with Lisa Boulton, our Mortgage and Protection Advisor, to talk about the current economic climate and what it means for remortgagers and first-time buyers.
Interest rates seem to be constantly rising. My mortgage is due to expire soon. What should I do?
“Don’t leave it too late. We recommend shopping around for a new deal around six months before the current deal is due to expire. That way, there will be plenty of time to get together the necessary paperwork and secure the right product.”
What happens if my mortgage deal expires and I haven’t secured a new deal?
“When your fixed mortgage deal ends, your mortgage will automatically revert to your lender’s standard variable rate (SVR) of interest. This rate will almost always be higher than your previous fixed rate. This rate can also change at any time, making it hard to budget. The good news is that if you provide us with the date that your fixed rate ends, we will add your details to our system and we will contact you when you are in that all important 6-month window. As part of your remortgage review, we will compare the deals that will be offered to you as an existing customer with those in the wider market and whatever the outcome, we can help you secure your new deal whether that be with your current lender or a remortgage to a new lender.”
What can I do now to get mortgage ready?
“It’s never too early to get mortgage ready. Whether you’re remortgaging or are a first-time buyer, here are some of the things you can do:
- Get a copy of your credit report
- Create a budget to see how much you can afford to borrow
- Work on paying off existing debt (consider starting with the most expensive debt first)
- Avoid applying for new credit before applying for your mortgage
- Pay your bills on time
- Check your credit report every month
Should first-time buyers wait for a while before looking for a mortgage?
“Every situation is different. If you have a good deposit and the required income in place, then go for it. The housing market is starting to stablise right now, meaning house prices are decreasing. Remember, the sooner you get on the housing ladder, the sooner you can start paying off your mortgage and building up equity in your property.”
Any tips that customers may not know?
“Using the services of a mortgage broker is one of the best things you can do for your financial future. We’ll tailor our advice and the products we recommend to your personal needs and situation. And because we have access to hundreds of products, we find deals that may not be available to you on the high street. Oh, and one thing that our customers might not know is that you can secure a rate with many lenders for at least six months before your existing deal is due to end.”
Get Expert Mortgage Advice Today
At Alextra Mortgages, we bring you expert advice, some of the best products on the market, and peace of mind that you got the best deal for your situation. Speak to our team today to get started.
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The guidance provided within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
Alextra Wealth Management Limited which is an Appointed Representative of TenetConnect Limited, which is authorised and regulated by the Financial Conduct Authority.
TenetConnect Limited is entered on the Financial Services Register (www.fca.org.uk/register) under reference 149826.