Exactly what will happen with the mortgage market in 2023 remains to be seen, but hundreds of thousands of UK homeowners will likely be looking to remortgage at some point in the year. This guide will help you decide if you should remortgage in 2023, but it’s a good idea to let us know your situation so we can give you specific advice and keep you informed of the latest deals available to you. You can book a FREE no-obligation appointment here.
2022 was a turbulent ride for the UK mortgage market and the economy as a whole. High inflation, the cost-of-living crisis and a recession are expected to continue through much of 2023, but there may be some relief when it comes to mortgage rates. In this guide, we’ll look at some of the reasons you may want to remortgage based on the current economic climate, and what type of mortgage deal may be right for you.
Coming to the End of Your Mortgage Deal in 2023?
If your mortgage deal is ending in 2023, you may have to accept a higher rate when remortgaging than your current rate. However, it’s still important you switch to a new fixed-rate or tracker mortgage, as doing nothing is likely the riskiest and most costly option. If you don’t remortgage, you’ll roll onto your lender’s Standard Variable Rate which is usually the highest rate your lender offers (and is subject to change with little notice).
If it looks like you may struggle to afford your new fixed-rate or tracker mortgage in 2023, we may advise that you extend the term of your new deal to reduce your monthly repayments. It may also be important to choose a deal that allows you to make overpayments to pay off your loan more quickly and reduce the amount of interest you pay. If your fixed-rate period is ending in 2023, we recommend chatting with one of our friendly advisors as soon as possible so we can monitor what deals are available to you and give you advice based on your situation. It’s free to chat to us and find out your options, simply book a FREE no-obligation appointment.
Struggling With Debt in 2023?
The cost of living may continue to rise in 2023, which could make it even harder to keep up with loan and credit card repayments. Remortgaging can be a good opportunity to pay off debts using additional borrowing so you just have your mortgage to pay off each month. The main benefit is that your mortgage loan will usually be spread over a much longer period than personal loans or credit cards, which can make your monthly debt repayments more affordable. However, borrowing more money against property isn’t right for everyone, and despite potentially being more affordable month to month, you may pay more interest in the long run. For these reasons, it’s important you speak with one of our friendly advisors before paying off your debts by remortgaging.
Struggling to Move House in 2023?
The housing market is expected to slow down in 2023*, and various economic factors could make it a difficult year to move house for some people. If you’re in need of more space, perhaps adding an extension, garden office or making other improvements to your current home may be a more achievable option. One way to fund these projects is by borrowing additional money when remortgaging – essentially taking advantage of built-up equity or value in your home to improve or expand it. Mortgage rates are, in general, expected to be lower in 2023 than at the tail end of 2022, so borrowing more for home improvements could be a better option than moving house for some people.
Fixed-rate or Tracker Mortgage?
For most of the last decade, most homeowners remortgaged to a new fixed-rate deal. However, since the last quarter of 2022, tracker mortgages have increased in popularity. A tracker mortgage is set at a certain percentage above the Bank of England’s base rate. If the base rate was to peak in 2023 and then drop, a tracker mortgage could work out cheaper than a fixed-rate mortgage – but this isn’t guaranteed. Another advantage is that tracker mortgages are usually much cheaper to terminate than a fixed-rate deal. However, the interest rate you pay on a tracker mortgage can go up as well as down, making this type of mortgage riskier and harder to budget for. Whether you should remortgage to a fixed-rate or tracker mortgage comes down to your situation and what deals are available to you at the time. Book your FREE no-obligation appointment and we’ll assess what options you have and explain how a fixed-rate or tracker mortgage may play out for you.
The Bottom Line
With the rising cost of living and a potential recession to deal with in 2023, being smart about your mortgage has rarely been more important. There are many reasons you may want to remortgage, such as coming to the end of your current deal, needing to increase the term of your deal, needing to reduce your monthly debt repayments, or wanting to fund home improvements. Whether you remortgage to a fixed-rate or tracker mortgage depends on your situation, but either product is preferable to letting your current deal expire without taking action. It’s free to chat to our friendly advisors and see what options are available to you, so if you’re considering remortgaging in 2023 please get in touch.
We’ve been helping our local community with remortgages for over 30 years! We search thousands of products to find a deal that suits your needs. We also guide you through the process and liaise with your lenders and solicitor to ensure your remortgage goes smoothly.
Book your FREE no-obligation appointment with one of our friendly advisors to get going quickly. We have offices in Frimley and Basingstoke, or we can help you remotely via phone or video call if you’d prefer. We look forward to chatting with you!
Book your FREE no-obligation appointment here
*Source: https://www.property118.com/house-prices-predicted-to-fall-by-5-in-2023/
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Think carefully before securing any other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage.
