Double digit annual growth means the equity in many homeowners’ properties will have increased a great deal in the last two years.
Figures show since the start of the pandemic the average home has increased in value by £47,568.
Many homeowners will therefore be in a position to move up an ‘LTV band’. LTV or – loan-to-value (LTV) ratio – refers to the proportion of your property’s value you need to borrow.
It maybe you are a few hundred pounds away from being able to change to a 75% LTV band which will mean you can get much better rates. Speak to an independent adviser as they can help you to achieve this.
Will the cost-of-living crisis impact my re-mortgage affordability?
There’s another reason why it’s worth re-mortgaging now rather than in a few months’ time. The cost-of-living crisis means many of us are noticing a big difference to our day-to-day spending.
From an extra £10 when you fill up your car, to the cost of your supermarket shop going up each week to the knowledge you are going to be paying an additional £600 or more on your heating bill over the year – you will probably be paying out more now than you were when you took out your mortgage.
Although lenders assess living costs when assessing mortgage applications, many have not yet updated their affordability calculators to take the current situation into account.
Therefore, by re-mortgaging now you can take advantage of a some offers which many will not there in a few weeks.
Mortgage offers last, in general, for six months. For new builds it might be longer. So, if your mortgage is due to expire in the next six months you can lock into a better deal whilst conditions are good.
Please do make contact and one of our independent advisers will be happy to assist.