Is now a good time to remortgage or should I wait?
Posted:17th November 2022
It is well reported that the Bank of England have recently raised interest rates to 3%, representing the biggest hike since 1989. As a result, financial journalist Martin Lewis addressed the nation on ITV’s Good Morning Britain and told us to expect to pay an additional £40 per month on top of existing mortgage payments.
With the ever-increasing interest rate of mortgages and the general cost of living on the rise, the question of whether you should remortgage may be leaving you with a dilemma.
The increase in interest rates means it is more expensive to borrow money, monthly payments are on the rise and the incentive to save rather than spend is becoming increasing popular.
Negotiating financial settlements underpins the work that family solicitors do, and this often involves advising clients on how property and affairs should be appropriately dealt with. When a couple divorce, for example, if a property is jointly owned and one person is to remain living there, the property will have to be formerly transferred into the that person’s sole name. This could involve a remortgage to raise the funds to ‘buy out’ the other spouse. The transfer may be unable to go ahead until the outgoing party is released from the mortgage.
It is therefore crucial to fully consider your position following any separation. This will ensure that any settlement reached is suitable for your needs and allows for financial independence. Specific advice regarding which mortgage is most appropriate for you should be sought directly from a mortgage provider or an independent financial advisor.
The future of interest rates is uncertain, and you may wish to lock in a new mortgage rate now rather than hope that the interest rates decline. However, as everyone’s circumstances are different, a one size fits all approach does not apply here and so full consideration should be given to your individual and family circumstances.
At EMG Solicitors, we are here to support you through the process and ensure that you are well informed of your options. If you would like to speak to a member of our Family team, please get in touch by emailing [email protected]