Property Blog: Snooze, you lose

Published: 24/01/2014

On these cold winter mornings I have been known to utilise the snooze button - particularly if I’ve forgotten to reset the timer on the heating after weekend lie ins. But while the only real repercussion I face for over familiarity of the snooze button is missing breakfast, dozing homeowners could find themselves facing a much costlier outcome.

The Bank of England’s historically low base rate has been well documented as has the threat of its inevitable rise. But when a senior Bank of England member is as bold as to say now is a good time to fix this threat goes from a water cooler rumbling to a full on Basement Jaxx-esque ‘Red Alert’.

Mr Sharp is not alone in his opinion; Legal and General Mortgage Club last week too warned borrowers not to ‘sleepwalk into higher mortgage repayments’ which would be the highly likely outcome should the base rate awake from its slumber; Its calculations suggesting a rise of just 0.5% on a £150,000 mortgage would see repayments shoot up by £62.50 a month or £750 per year. There goes this year’s holiday!

Many have already taken heed; 77.3% of borrowers opted for a fixed rate in the last three months of the year. But there inevitably remain many homeowners who are either biding their time or remain under the notion that remortgaging is as difficult as a six am start. So to put this myth to bed once and for all here’s how easy remortgaging can be:

Step one | It’s good to talk

Speak to a mortgage adviser about your remortgage options. Going direct to a lender could mean you miss out on a better deal. A mortgage adviser can help you calculate your loan to value and then search the whole of market to find the best rate for you.

Step two | Make your choice

Once you have found your new mortgage the next step is to instruct a solicitor, a decision which will ultimately determine how straightforward your remortgage will be! An experienced solicitor makes the journey as smooth as possible whilst remortgaging with an inexperienced solicitor can be the equivalent of journeying with a child prone to travel sickness!

Step three | Put pen to paper

There are only a couple of things you’ll need to do during the remortgage process. Firstly complete and return the required paperwork to your chosen solicitor and secondly sign the new mortgage documents.

And it really can be that easy. That said there will undoubtedly be many desperate to understand the ins and outs of remortgage; it’s human nature to want to know what’s going on and what’s involved in the remortgage process - knowledge is power after all. So to help matters we’ve produced an infographic of your remortgage journey (minus the queasy child), explaining how you go from ‘yes let’s remortgage’ to ‘oh we’ve remortgaged’!

Sorting out what is likely to be your biggest monthly expenditure will lift a huge weight and make you sleep so well you’ll never need to snooze again. Ok maybe not - love the snooze!

Rob DenmanLynne McCaffrey is a licensed conveyancer with over 18 years experience. As Head of Property at Goldsmith Williams Lynne is responsible for the day to day running of the property department, which specialises in conveyancing, remortgage, buy to let and bridging.

Content correct at time of publication

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