While consumers may think that they need to automatically remortgage due to higher rates, experts are urging them to think twice before getting stuck in a bad deal. Fees are higher than ever for remortgages and many may not realize just how much they will be paying out over the long term on their remortgage loan. Caution is urged as well as shopping around for the best deal for jumping into a new loan.
“There is no need to remortgage to a shorter term because the end effect is just the same,” says Melanie Bien of broker Savills Private Finance. “As you currently do, you’ll simply pay less interest over the term. It’s important to only overpay by as much as you can comfortably afford, as you can’t get this money back.”
Louis Cuming of MoneySupermarket stated, “Landlords wishing to remortgage buy-to-let properties will find it difficult, with lenders demanding sizeable deposits or charging higher rates. This could force landlords to re-evaluate whether it is worthwhile staying in the sector in the current climate. With property prices falling though, there may well be many landlords having to sell their investment at a loss.”
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