I was talking to an estate agent about the housing market earlier this week and he pointed out that there are only about six weeks left to get your property sold before things start to wind down for Christmas. As people come back from holiday and the schools go back, it’s a good time to focus the mind. While you may not be in the market for a new home, everyone could do with taking a look at their mortgage and ensuring they aren’t paying more than they need to.
The good news is that there are still plenty of competitive products on the market with five-year fixed rates available from less than 2.5 per cent, depending on the amount of equity you have in your home. If you are sat on your lender’s standard variable rate and are worried about the potential of an interest rate rise in the not-so-distant future, it may be worth securing one of these deals to protect yourself against higher mortgage payments.
With the mortgage market review rules making it harder to remortgage, it is important that you seek independent advice. Borrowers may be in for a shock as lenders are asking many more searching questions and will want to see much more evidence of income and outgoings than the last time you remortgaged. Our brokers can guide you through the process and ensure you are in the strongest position possible when it comes to making your mortgage application.
To get ready to make a mortgage application, set up a file with 12 months’ bank statements (order replacements for any missing ones; three to six months of payslips; three years of accounts or SA302s or tax returns, if you are self-employed; a recent utility bill and copy of your passport; as well as full and detailed income and expenditure summary. Most mortgage offers last up to six months so plan ahead and don’t leave it until the last minute, or you may end up on a more expensive SVR.