Remortgage Advice in Plymouth: Is Your Fixed Rate Coming to an End? A Complete Guide for Customers

Is your fixed-rate mortgage coming to an end? If you’re a homeowner in Plymouth, Kingsbridge, Tavistock or South East Cornwall, now could be the right time to start thinking about your remortgage options.

When your fixed mortgage rate ends, your lender will usually move you onto its Standard Variable Rate (SVR) unless you arrange a new mortgage deal. Because an SVR can be higher than the fixed rate you have been used to, your monthly mortgage payments could increase.

At Stuart Ash Mortgage Services, we help customers understand their remortgage options and find a mortgage solution that suits their individual circumstances.

In this guide, we explain what happens when your fixed rate ends, when you should start looking at your options, and why getting professional remortgage advice in Plymouth could potentially save you money and give you greater peace of mind.

What happens when your fixed-rate mortgage ends?

A fixed-rate mortgage gives you the security of knowing that your mortgage interest rate will remain the same for an agreed period, commonly two, three or five years.

However, the fixed period eventually comes to an end.

If you don’t arrange a new mortgage deal, your existing lender will generally transfer you to its variable rate. This could mean your mortgage payment increases, particularly if your current fixed rate is significantly lower than the rate available when your deal ends.

For example, if you have been paying your mortgage at a fixed rate of 2.5% and your lender’s variable rate is considerably higher, the difference could have a noticeable impact on your monthly household budget.

This is why it can be sensible to review your mortgage before your fixed rate actually ends.

When should you start looking at remortgage options?

One of the most common questions customers ask is: “How early should I start looking at my remortgage?”

There isn’t a single answer that applies to everyone, but it is generally sensible to start reviewing your mortgage several months before your current deal ends.

Starting early gives you time to:

• Understand what your current lender is offering.
• Compare alternative mortgage products.
• Review your income and expenditure.
• Check your current mortgage balance.
• Consider your property’s estimated value.
• Look at your loan-to-value (LTV).
• Identify any early repayment charges.
• Consider whether your circumstances have changed.
• Arrange a new mortgage deal before your existing rate expires.

Mortgage rates and lender criteria can change, so planning ahead can give you more time to consider your options rather than waiting until your fixed rate has already ended.

What is a remortgage?

A remortgage is when you replace your existing mortgage with a new mortgage, either with your current lender or a different lender.

You may choose to remortgage because:

• Your current fixed-rate deal is ending.
• You want to secure a new fixed rate.
• You want to consider a different mortgage term.
• Your financial circumstances have changed.
• Your property’s value has increased.
• You want to explore whether a different mortgage could be more suitable.
• You want to investigate additional borrowing, subject to affordability and lender criteria.

Remortgaging isn’t necessarily about moving home. You remain in your existing property while changing your mortgage arrangements.

Should I stay with my current mortgage lender?

Not necessarily.

When your fixed rate ends, your existing lender may offer you a new product. This is often known as a product transfer.

A product transfer can sometimes be straightforward, particularly where you’re happy with your lender and don’t need to make significant changes to your mortgage.

However, it may still be worth reviewing the wider mortgage market.

Different lenders can have different:

• Interest rates
• Fees
• Lending criteria
• Maximum loan-to-value limits
• Affordability calculations
• Mortgage terms
• Criteria for self-employed applicants
• Criteria for customers with unusual circumstances

This is where professional remortgage advice in Plymouth can be valuable.

Rather than simply accepting the first option available, a mortgage adviser can assess your circumstances and help you understand the options that may be available to you.

What is loan-to-value and why does it matter?

Your loan-to-value (LTV) is the percentage of your property’s value that you are borrowing.

For example, if your property is worth £300,000 and your outstanding mortgage is £150,000, your LTV would be 50%.

Generally, a lower LTV can provide access to a wider range of mortgage products, although this depends on individual lender criteria and circumstances.

This means that if your property has increased in value since you took out your current mortgage, your LTV may have fallen.

For homeowners in areas such as Plymouth, Kingsbridge, Tavistock and South East Cornwall, reviewing your property’s current value as part of your remortgage planning may therefore be worthwhile.

However, it’s important not to assume that your property has increased in value or that a particular mortgage rate will be available. Lenders use their own valuation processes and criteria.

What if my circumstances have changed?

Your circumstances may be very different from when you originally took out your mortgage.

Perhaps:

• Your income has increased.
• You’ve changed jobs.
• You have become self-employed.
• You’ve started a family.
• Your household income has changed.
• You have taken on additional credit commitments.
• You have received a pay rise or changed your working pattern.
• Your property has undergone improvements.
• You are approaching retirement.

These changes can affect what mortgage options may be available.

This is particularly important if you’re considering changing lender because the new lender will normally assess your circumstances and affordability as part of the application process.

A mortgage adviser can help you understand what information and documentation may be required before you apply.

Remortgaging if you’re self-employed

If you’re self-employed, you may have additional questions about remortgaging.

Lenders can have different approaches to assessing self-employed income. They may consider factors such as:

• Your trading history.
• Company or partnership accounts.
• Tax calculations.
• Salary and dividends.
• Average income over previous years.
• Business performance.
• Your overall affordability.

If you’re self-employed in Plymouth, Kingsbridge, Tavistock or South East Cornwall, getting your mortgage plans reviewed early can be particularly useful.

The exact evidence required will depend on the lender and your circumstances.

Can I borrow more when I remortgage?

Potentially, although additional borrowing is subject to affordability, lender criteria and the purpose of the borrowing.

Some homeowners consider additional borrowing for purposes such as:

• Home improvements
• Renovations
• Repairs
• Extensions
• Other significant expenditure

However, increasing your mortgage also increases the amount secured against your property and could increase your monthly payments or the total amount of interest paid over the mortgage term.

It is therefore important to consider whether additional borrowing is appropriate for your circumstances.

What costs should I consider when remortgaging?

Remortgaging isn’t simply about finding the lowest interest rate.

You should consider the overall cost of the mortgage.

Potential costs can include:

• Arrangement or product fees.
• Valuation fees.
• Legal costs.
• Broker fees, where applicable.
• Early repayment charges on your existing mortgage.
• Other lender fees.

A mortgage with a lower interest rate isn’t automatically the cheapest option once fees and the full mortgage term are taken into account.

This is why looking at the overall cost and suitability of a mortgage is important.

What happens if I do nothing?

If your fixed rate ends and you haven’t arranged another deal, your lender will normally move you onto its variable rate.

That doesn’t necessarily mean you will immediately need to change your mortgage. However, you should understand what your new rate and monthly payment are likely to be.

Doing nothing can potentially mean paying more than necessary, depending on the rate you’re moved onto and the mortgage products available to you.

If your fixed rate is coming to an end, it is therefore worth putting a reminder in your diary and starting your review early.

Remortgage advice in Plymouth

If you’re searching for remortgage advice in Plymouth, Stuart Ash Mortgage Services can help you review your mortgage options.

We understand that every homeowner’s circumstances are different.

Whether you live in Plymouth, Plymstock, Ivybridge, Kingsbridge, Tavistock, Saltash, Liskeard or elsewhere across South East Cornwall, we can help you understand the mortgage options that may be available based on your circumstances.

Our role is to make the mortgage process easier to understand and help you make an informed decision.

Remortgage advice in Kingsbridge

Homeowners in Kingsbridge and the South Hams may have different mortgage requirements depending on their property, income and personal circumstances.

If your fixed-rate mortgage is approaching its end date, don’t wait until the last minute.

A review can help you understand whether staying with your existing lender or considering an alternative mortgage provider could be appropriate for you.

Remortgage advice in Tavistock

If you’re based in Tavistock or West Devon, your mortgage circumstances may have changed since you arranged your current deal.

Whether you’ve seen changes to your income, employment, property or household circumstances, a remortgage review can give you the opportunity to reassess your mortgage needs.

Planning ahead is particularly important if your current mortgage has an early repayment charge or other conditions that you need to consider.

Remortgage advice across South East Cornwall

For homeowners in South East Cornwall, including areas such as Saltash, Liskeard and Looe, the end of a fixed-rate mortgage is a good opportunity to review your finances.

You don’t necessarily need to wait until your current deal expires.

Speaking to a mortgage adviser early can help you understand the timing of your options and what information you may need to provide.

Final Thoughts:

If your fixed-rate mortgage is coming to an end, Stuart Ash Mortgage Services can help you review your options.

Contact – Stuart Ash – Mortgage Services

‘Your home may be repossessed if you do not keep up repayments on your mortgage’

‘You may have to pay an early repayment charge to your existing lender if you remortgage’