If you took a 5.5- or 6-times salary mortgage through some of the specialist lenders or building societies, you may be struggling to remortgage onto a competitive rate.
While lenders like Tipton Building Society, Market Harborough, Clydesdale Bank, Dudley Building Society, Secure Trust and Metro Bank provided income stretch mortgages, the lenders were not all providing competitive product transfer rates/remortgage deals.
Santander remortgage special
Santander for Intermediaries recently launched a 5.5 times salary mortgage designed to help borrowers remortgage away from lenders providing uncompetitive reversion rates. This product is unusual because applicants do not need a minimum income to qualify, potentially enabling them to switch lenders.
Aaron Strutt, product director at Trinity Financial, says: “Most of the lenders provide mortgages up to five times salary as standard for remortgages, although there are exceptions for professionals or higher earners. Santander's 5.5 switcher deal is something unique to the market.
“Many of the borrowers taking income stretch mortgages took discounted rates or shorter-term fixes and their monthly repayments will be getting more expensive as the rates finish.”
If you have an income stretch mortgage and the rate is about to expire, contact your bank or building society and find the rate they will offer you to stay. You can then research the market to find out if you can get a better deal.
Trinity has access to Santander for Intermediaries, and the lender is offering some highly competitive rates starting from 1.30% if you have 40% equity in your property. They are not hugely more expensive if you have 15% equity in your home.
Call Trinity Financial on 020 7016 0790 to switch to secure an income stretch remortgage