Many mortgage borrowers will have higher mortgage repayments if they do not act to switch rates with a significant amount of residential and buy-to-let rates expiring over the next four weeks.
Data from consultancy firm CACI shows there is £20.24 billion worth of mortgage rates coming to an end during April, this figure is 11% of all mortgage maturities in 2020 and 14% higher than last year's value for the month.
If your mortgage rate is coming to an end and you do not change your mortgage your repayments will increase even though we are going through this crisis. Mortgages revert on to a standard variable rate automatically.
Aaron Strutt, product director at Trinity Financial, “Lots of our clients are coming to the end of their fixed rates and they do not want to get stuck on an expensive standard variable rate. We contact them to confirm their best options and whether they need to remortgage to another bank or building society.
“Borrowers need to give themselves time to switch deals and understand their options especially if they want to raise additional funds. With so many mortgages expiring this month many homeowners have not arranged new deals yet - some of the biggest lenders have told us borrowers tend to act when they notice the increased repayments coming out of their bank account.”
Call Trinity Financial on 020 7016 0790 to secure a remortgage
We normally advise our clients to start assessing the mortgage market around four months before their rates expire.
Borrowers need to give themselves time to switch deals and understand their options especially if they want to raise additional funds.
There are still some cheap trackers available but since most of the lenders stopped offering them there is not a huge choice. There is still a wide selection of two, three, five and ten-year fixed rates.
If you apply for a mortgage and the bank or building society says they cannot help because they are restricting lending, you should try another provider.
Some of the lenders have pulled out of the market although others are trying to be as generous as possible and not just to those with the biggest deposits.