Borrowers whose mortgages are maturing for the first time could save as much as £274 a month by remortgaging their properties, a study has revealed.
These borrowers are referred to as ‘first time maturers’ by those in the mortgage industry, with many homeowners delaying the remortgaging process due to fears that the process will be complicated or time consuming.
According to Yorkshire Building Society, £5.6 billion worth of mortgages are due to mature in the UK this month, making it the second largest ‘maturity peak’ of the year.
Reassuringly for mortgage holders whose deals are set to expire, there’s an abundance of affordable mortgages on the market that could lead to significant savings.
Take for example a homeowner who borrowed £190,000 in April 2017 (90% LTV on a £200,000 property) at an interest rate of 2.04%. According to Yorkshire Building Society, they could now benefit from a reduced loan-to-value (LTV) of 85% when taking out a new mortgage. This is the result of the UK’s average house price for first time buyers increasing by 3% over a two-year period.
Many people delay the remortgaging process because they assume it will require a lot of effort and tons of financial knowledge. However, this couldn’t be further from the truth.
With the help of a mortgage broker, you can remortgage your property with ease. Not only will your broker compare countless mortgages for you before highlighting the ones most suitable, they’ll also take on a considerable amount of the paperwork on your behalf.
To find out how TaylorMade can help you remortgage your home, please get in touch with our team today.
