Ensure speedy Land Registration to avoid missing out on attractive re-mortgage options

Posted by Julie Scott on September 11th, 2023

Re-mortgaging can be an excellent way to get a better rate on your current mortgage or even to get a more flexible package that works for you. There has never been a better moment to work with a mortgage adviser and land registration consultants who offer online ID1 verification when interest rates are on the increase and administrative hold-ups in land registration prevent some owners from selling their properties and cause buyers to miss the best mortgage deals. This is crucial, especially when you want to refinance after your current loan expires.

You should not let unstable markets prevent you from refinancing. Due to base rate increase and looming market uncertainty, mortgage rates have increased in the passing years or so. Borrowing costs have increased as a result of an increase in the base rate. Theoretically, this discourages you from spending and pushes you to save. Then, if there is less demand to buy service and goods and services, prices start to fall, and subsequently inflation also follows.

You could need to pay extra for your mortgage as a result of a higher base rate. Unfortunately, your mortgage can cost more if the base rate rises. You should be safe against price increases if you have a fixed-rate mortgage because your payments are set in stone. Your payments will probably increase if you have a variable- or tracker-rate mortgage. Because these mortgage products frequently follow the BoE base rate.

Millions of homeowners in the United Kingdom have been affected by rising mortgage rates. While half the borrowers have taken mortgagees on tracker rates, the others have taken loans on standard variable rates. Since December 2021, one in every four borrowers has seen their mortgage amount increase every six weeks.

Re-mortgaging allows one to get better deals, and there are several benefits. When a current mortgage term ends, you will have to option to place yourself under the SVR rates of the lender. This should however not be prolonged as there is a risk of the base interest rates rising again in the future, and this will result in higher mortgage rates and more monthly outflows. The lenders have the freedom to change the SVR whenever they like and thus mortgages can become more expensive.

There is another option to pay off full, or part of the mortgage in the event of your financial situation getting better by way of inheritance or a pay raise. However, one must keep in mind that lenders may restrict foreclosures to a certain percentage and also charge pre-payment penalties.

So, when you remortgage, you will get an opportunity to get better and more flexible terms to suit your present circumstances. Though remortgaging is an ideal way to manage the existing liabilities, it is also significant that you do not leave it off till the last moment. Delays in land registration and creating charges on the property can often leave homeowners missing out on attractive rates.

Property consultants review mortgage deals well in advance when the current mortgage term expires. They give their clients a clear picture of the prevailing rates and what terms the client can get down the line if they opt for remortgaging.

Homeowners should keep an eye on the mortgage rates every month so that they know what is the best deal they can get when their present agreement expires. It is better to have Land Registry ID verification consultants around the corner beside the mortgage broker who can guide you through the entire process so that you avoid unnecessary mental pressure.