The Question
Okay, I am slightly embarrassed about asking this question – but this is my first step on (hopefully) a journey of financial transformation… so, here goes!
I have owned my flat for nearly 10 years now. I originally took out a two-year mortgage deal when I bought it back in January 2012. However, I have neglected the mortgage since then and haven’t given it much thought.
Recently, I have found myself in financial difficulty because of Covid and my cousin, who is training as a financial adviser, agreed to take a look at my finances. Turns out I am paying way too much on my mortgage – the interest rate is nearly 4%!
My cousin said rates have fallen to as low as 0.99% and I am paying too much – I have been told off. So I wondered, is it too late to remortgage? And, if not, what should I do? Will the fact I have not switched up until now work against me? I have never defaulted and have a good credit file.
Jeni’s Answer
You and almost 30% of borrowers are in the same situation, rest-assured, you’re not the only one! The fact you’ve not remortgaged for ten years will have no impact on your ability to do so now. From what you’ve said, and given the amount of time since you took the mortgage, I’m assuming that your financial situation may have changed in that time.
So, I would strongly recommend speaking to a mortgage broker to get a thorough understanding of what is available to you (and remind you of the process!).
You can read more of Jeni’s advice on residential mortgages 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 email kate.saines@emap.com
Jeni Browne is business development director at Mortgages for Business
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