Landlords re-mortgaging to save

Are you coming to the end of a fixed rate mortgage deal? If so it requires careful consideration of what to do next. Do you take the easy route and revert to your lender's standard variable rate (SVR), or do you put a bit more time in to compare mortgage rates and re-mortgage to the best possible deal? Really, it should always be the latter, especially as our research shows that doing so could save you over £2,000 each year.

Recent mortgage data shows that motivation to re-mortgage is at its highest level since October 2008 within the buy-to-let sector.

Borrowers who are coming off a two and three-year fixed rate deal this month could save a huge amount of money if they re-mortgaged instead of reverting – it's a no-brainer! This is because the average two-year mortgage rate of June 2015 stood at 3.5%, while the current average SVR is over 5%. This means those now facing the option of reverting could see a rate hike of 1.5% if they did so, a huge jump by anyone's reckoning. The motivation to re-mortgage has been edging up in recent months as landlords look to save on monthly repayments, seeking a better deal is certainly a good route to take.

If you just revert this could add a huge amount to your repayments, re-mortgaging could save you a small fortune, with figures showing that you could be better off by thousands of ££££’s.

If you are looking for a new or re-mortgage please do get in contact and one of our advisers will be happy to help.