Should I Remortgage My Home Before Brexit?

With Brexit fast approaching, many people are starting to worry about the financial implications of Britain’s exit from the EU.

As I explained in my recent post Should I Buy A House Now Or Wait Until After Brexit, it’s hard to predict how the event will impact our finances. Even the country’s leading economists and financial experts are unable to make any promises.

Nevertheless, there are some sensible steps you can take to soften the blow that financial uncertainty can have on your bank balance. If you’re a homeowner, one of the best things you can do is make sure your mortgage is affordable, secure and safe from economic turmoil.

Should I remortgage my home before Britain leaves the EU?

If you’re a homeowner, remortgaging could save you thousands of pounds and protect you from financial uncertainty.

Not every homeowner will benefit from a remortgage right now, but with millions of lenders currently on their lender’s Standard Variable Rate (SVR)*, far too many homeowners are setting themselves up for a financial rollercoaster if interest rates change once we leave the EU.

You’re most likely to benefit from remortgaging if:

• You’re on your lender’s Standard Variable Rate (SVR)
• You have a tracker or variable rate mortgage
• You’re getting close to the end of your fixed rate deal

I bought my first home in December 2017 and opted for a 5-year fixed rate mortgage. This means that if the economy takes a hit, I won’t see my mortgage repayments rise until after my 5-year fixed rate has finished. So, for me, there’s little point in remortgaging.

But if you identify with any of the above bullet points, I’d recommend comparing a number of mortgage deals to see if there’s a more affordable one for you.

There are three main ways you can compare mortgage deals:

• Ask your lender if they have a more affordable (and fixable) mortgage product
• Use a mortgage comparison website to find a better deal
• Get in touch with a mortgage broker

Personally, I think using a mortgage broker is the best option. Your mortgage broker will compare dozens (and in some cases hundreds) of different mortgages from a huge selection of lenders. They’ll take a look at your income, credit rating, and the amount of equity you have in your property, before highlighting the lenders most likely to accept your application and offer you a good deal. Once you’ve chosen the deal for you, your broker can help you through the mortgage application process and take much of the paperwork and phone calls off your hands.

I used Habito to find the mortgage I have now and when it’s time for me to remortgage in a few years, I’ll probably use them again to get another great deal.

Habito is an free online broker and they’ll search the whole market to find you the best mortgage based on your circumstances.

If you’d like to use Habito for your remortgage, use my Habito referral link and you and I will each earn £100 cash on completion of your mortgage. Simply follow this link to create your account and get started.

*Basically, your lender’s Standard Variable Rate is the interest rate that you’ll be moved onto once your fixed rate period has finished. This could see your repayments increase and fluctuate.