Interest rates are rising, is now the time to remortgage?

There are certain periods in life when you need to spend time focusing on your mortgage. Have there been developments in your personal life? Or are there external developments in the market that could impact your mortgage? Klår Finance explains why it might be time to consider remortgaging your house.

Why should you remortgage?

Interest rates have risen recently. This means, for many people, it might be time to consider remortgaging. This is usually done for one of the following reasons:

• Better conditions (e.g. a more suitable mortgage type for your situation).
• Cheaper mortgage (taking into account any one-time remortgaging costs).
• More certainty for the future.
• A higher mortgage for renovation options, or making your home more sustainable.

Why remortgage now?

Interest rates have been falling for a long period of time. However, since the beginning of 2022, interest rates have begun to rise. In this short period, interest rates have now reached the same level as they were in 2019. Despite this increase, it is good to bear in mind that the current interest rate is still very low historically.

The interest rate is an important aspect of your mortgage, as it also plays a large role in determining the amount of your monthly payments. Furthermore, it is predicted that interest rates are going to continue to rise soon. This is partly due to current world events, namely the impact of COVID, and also the Russian invasion of Ukraine. Keeping this in mind, it could be an idea to spend some time now to fix your interest at a lower level, for a longer period.

How do you remortgage your home?

Does remortgaging sound interesting to you? Or would you like to have a clear overview of your options? Then, you should speak to a mortgage advisor.

Remortgaging begins with an extensive inventory of your current situation. Here are some questions to think about:

• How long do you expect to live in your current home?
• Do you have renovation plans?
• Would you prefer to have financial security or are you happy to run some risk?

With your input (from the aforementioned questions) your advisor will begin by delving into your current mortgage. Is there a penalty with your current lender (depending on your current interest rate and fixed interest period)? Are there any additional costs applicable (appraisal costs, notary costs, consultancy costs)? Finally, they will discuss your possible remortgaging options.

Klår Finance is more than happy to help with the remortgaging process. Klår's advisors will start by discussing the possibilities presented in a “get to know you” meeting. Following this, you will receive a personalised overview within four days. This will grant you transparency and understanding and, in this way, you can focus on what's important again.