With interest rates on the rise it’s never been more vital to ensure you are on the best deal. But how do you go about remortgaging? Jeni Browne helps a reader who contacted us with this very question…
The Question
Sorry to ask such a basic question – I know people do this all the time but I feel a bit lost. I took out a two-year fixed rate mortgage with Barclays back in August 2020 and I am aware I will need to remortgage in August this year. But what do I do?
Will Barclays write to me with details of how to renew the deal? Or will I automatically switch to a new deal? I was a first-time buyer when I took out the mortgage on my flat in 2020 and I wish I had asked the person I spoke to about what would happen, but it didn’t occur to me!
The Answer
Not at all basic– it’s actually a very good question! Barclays will write to you before August, either setting out the rates they can offer you, or inviting you to contact them to discuss options.
I would encourage you to do some homework to see whether this offering is as good as anything you could get from other lenders (like when you renew your car insurance).
The easiest way to do this is to use a whole-of-market mortgage broker, but you will also find price comparison sites that will help with this.
I would suggest you get going on this no later than June, to ensure that your chosen option is ready to click in as soon as your current rate ends and to avoid going on to your lender’s reversion rate.
Jeni Browne is business development director at Mortgages for Business
You can read more of Jeni’s advice on readers’ residential mortgage questions here. If you are interested in a buy-to-let mortgage, Jeni also writes a Q&A column on this area of the mortgage market, here.
If you have a question you would like to ask Jeni email kate.saines@emap.com
