After a year of lockdowns, the current economic and social climate in our country has completely turned on its head. With more people working from home and generally being confined indoors, many people are seeking greener pastures. But will everyone be able to afford it?
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
With rock bottom interest rates, it could be wise to remortgage or even look for a change of scenery and buy a new property. On the other side, many missed out on government relief and as a result might have missed a mortgage payment or other important bill. If you find yourself in this situation, it might be difficult to secure a new deal.
What are the consequences of an uncertain future?
If you are nearing the end of the initial terms on your mortgage, normally you would consider remortgaging to find a better rate – either with your current provider or with a new lender. But the furlough scheme and an uncertain future means that for tens and possibly hundreds of thousands of people, that might not be the case.
If remortgaging is not an option then you’ll have to revert to your lender’s Standard Variable Rate (SVR) instead of searching for a new mortgage deal.
The average SVR is about 4.41%, almost 2% higher than the average two years ago. Anyone who has a two-year fixed rate deal could be dealing with a rate hike if they revert to their SVR.
Over time, the additional money adds up, and the longer your deal, the more money you’ll spend. So, it would seem that the pandemic has created mortgage prisons – people beholden to their current deals due to global chaos.
How do you break free from mortgage prison?
However, all hope need not be lost. As specialists with years of experience, we’ve built relationships with lenders who understand the difficulties associated with working in the medical field.
If you want to take advantage of the low interest rates and remortgage but are afraid your history will preclude you from doing so, we’ll help you decide if it is the right move for you. Get in touch with us today to find out.
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Dental & Medical Financial Services have been helping doctors and dentists with finding low-cost mortgages for your home and investment properties for over 25 years.
Tel: 01403 780 770