Secure Your Financial Future | The Importance of Early Mortgage Planning for Homeowners and Landlords

As a homeowner or landlord, proactively managing your mortgage is crucial to maintaining financial stability.One effective strategy is to start exploring remortgaging options six to seven months before your current fixed-rate term ends. This approach allows you to lock in a new interest rate early, providing a safeguard against potential rate increases and offering flexibility if rates decrease.

‍

Why Act 6-7 Months Before Your Fixed Rate Ends?

Starting the remortgaging process six to seven months in advance offers several benefits:

• Rate Security: Locking in a rate early protects you from potential interest rate hikes, ensuring your future payments remain manageable.
• Flexibility: If interest rates drop after you've secured a new rate, many lenders allow you to switch to a more favourable deal before the new term begins.
• Financial Planning: Knowing your future mortgage rate well in advance aids in accurate budgeting and financial planning.

‍

Real-Life Scenarios: Homeowners and Landlords

Homeowners: Consider a homeowner in the South of England whose fixed-rate mortgage is set to expire in six months. By initiating the remortgaging process now, they can secure a favourable rate amidst current market conditions. If interest rates rise in the coming months, they are protected; if rates fall, they have the option to switch to a better deal.​

Landlords: A buy-to-let landlord with properties in the Home Counties faces similar considerations. Early remortgaging allows them to lock in current rates, stabilising their mortgage expenses. This predictability enables more accurate forecasting of rental yields and overall profitability.​

‍

‍

Tom's Insight

Tom, Founder of Mortgage Tribe, emphasises the significance of early action:

"By exploring remortgaging options six to seven months before your fixed rate ends, you can secure a worst-case scenario rate, providing peace of mind. If rates decrease during this period, we can adjust your product to benefit from the lower rate."

Current Market Trends in the South of England

Taking a snapshot from in Berkshire and Hampshire the housing market has remained highly active, with areas such as Reading, Basingstoke, and Winchester seeing strong transaction levels. In some parts of these counties, demand for properties continues to outstrip supply, keeping prices resilient. With mortgage rates fluctuating, homeowners and landlords in these regions must stay ahead in their financial planning to secure the best possible deal before their fixed rate expires.

‍

Conclusion

Whether you're a homeowner or a landlord, considering your remortgaging options six to seven months before your fixed rate ends is a prudent step. This proactive approach not only safeguards you against potential interest rate increases but also provides the flexibility to adapt to favourable market changes, ensuring your financial planning remains robust and effective.​

‍

Why Choose Mortgage Tribe?

Mortgage Tribe is an appointed representative of HL Partnership (HLP), one of the UK's leading networks of mortgage and protection advisers. Being part of HLP means we have access to a comprehensive range of mortgage products across the market, ensuring we can find competitive solutions tailored to your needs. Our partnership also guarantees that we adhere to the highest regulatory and compliance standards, giving you peace of mind that you're receiving expert, professional advice.

By working with Mortgage Tribe, you benefit not only from our extensive market knowledge but also from the strength and credibility of being part of a trusted, FCA-regulated network. Whether you’re a homeowner or landlord, our goal is to help you make informed mortgage decisions that align with your financial plans.

‍

*​There may be a fee for mortgage advice.The precise amount will depend upon your circumstances but will range from £375to £500 and will be discussed and agreed upon at the earliest opportunity.​

*​Mortgage Tribe Limited, trading as Mortgage Tribe, is an appointed representative of HL Partnership Limited, which is authorised and regulated by the Financial Conduct Authority.​

*​Your home/property may be repossessed if you do not keep up repayments on your mortgage.​

*​The guidance and/or information contained within this article is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

‍

‍

‍

‍

‍