My Circumstances Have Changed: Can I Get a New Mortgage Deal?
As a 5-star, recommended mortgage broker in Bournemouth, I always recommend a full review of your personal circumstances, needs, and plans when considering a new mortgage deal. Changes in your life often mean a change in your mortgage needs.
Changes in Circumstances Often Mean Changes in Needs
Changes to your income, employment, family situation, and financial commitments warrant a comprehensive review of your mortgage needs. Many people who opt for a new product with their existing lender choose a like-for-like mortgage with the lowest interest rate. However, they rarely consider how to pay less interest, review their attitude to repayment risk, and consider the costs involved. This approach benefits the lender with fast business renewal and no risk, as direct-to-lender rate swaps are typically conducted on a non-advised basis.
The Aim is to Pay as Little as Possible
The goal of any mortgage recommendation should be to ensure long-term affordability while repaying the mortgage over the shortest possible term, minimizing the amount of interest and fees paid. Your mortgage should reflect your attitude to risk and consider any foreseeable changes in your future circumstances. Whenever you re-mortgage, it’s crucial to establish exactly what you can afford to pay, as reducing your mortgage term could save you a significant amount of money over the life of the mortgage.
My Circumstances Have Changed Negatively
Don’t worry! There are options available to you. For example, I recently completed a re-mortgage for a client whose income had stopped due to a critical illness, and whose wife was receiving statutory maternity pay. They were incorrectly informed that they would have no choice but to stay on their current lender’s high standard variable rate, which would have put their home at risk.
While this is an extreme case, it’s common for circumstances to change. Since the financial crisis, we’ve seen increased regulation and restrictions on certain types of lending. Interest-only mortgage lending is one of these areas. Under the new lending rules, many people would not be able to obtain this type of mortgage today.
Firstly, it’s important to explore your options from the whole of the market, including your current lender. There are rules to ensure that you are not penalised for changes in circumstances and policies that mean you can still access a competitive deal. Under new rules, your current lender would offer you a product from their current range under the “mortgage prisoner” rules.
Explore Your Options
In today’s competitive marketplace, with lenders vying for your business, it makes sense to review what is on offer. At Key To Mortgages, a leading Bournemouth mortgage broker, we can search mortgages from the whole of the market to ensure you never pay more than you need to. Whether you need a mortgage adviser in Bournemouth, Christchurch, or Poole, we are here to help.
Why Choose Key To Mortgages?
As a trusted Bournemouth mortgage broker, we bring the following benefits:
Local Expertise: We understand the intricacies of the Bournemouth, Christchurch, and Poole property markets, enabling us to provide tailored advice that meets your specific needs.
Whole Market Access: Unlike lenders who only offer their own products, we compare deals across the entire market to ensure you get the best possible terms.
Personalised Service: We work for you, not the lender. Our aim is to guide you through the re-mortgaging process, offering as much or as little assistance as you need.
Regulated Advice: We are authorised and regulated by the Financial Conduct Authority (FCA), providing you with the assurance that our advice is in your best interest and protected by FCA regulations.
When your circumstances change, whether positively or negatively, reviewing your mortgage options with a professional mortgage broker like Key To Mortgages in Bournemouth can help you find the best deal tailored to your needs. Contact us today to explore your options and secure a mortgage that fits your current situation.
You may have to pay an early repayment charge to your existing lender if you re-mortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
We offer a free initial mortgage consultation. There may be a fee for arranging your mortgage and the precise amount will depend on your circumstances. We typically charge a fee of £595.00.