Written by: Danny Belton - Head of Lending
As the year unfolds, many homeowners will be faced with having to renew their mortgage deals. Whether you're navigating this process for the first time or you’re a seasoned homeowner, being well-prepared for a mortgage renewal can make all the difference.
Let’s explore some tips and advice to help you plan for getting a mortgage renewal in 2024.
Start looking early on
Before your mortgage renewal notice even arrives, start checking out your current financial situation and goals. Make note of any changes in your income, expenses, and overall financial health. When you understand these, you’ll be in a better position to find deals that work for your circumstances.
It also makes it easier when it comes time to provide lenders or advisers with important paperwork!
Research current mortgage rates
We always recommend staying up to date with the latest mortgage rates in the market. Knowing this gives you some negotiating power, as you can compare rates from different lenders and financial institutions. If you want to renew with your current lender, you could consider getting quotes or mortgages in principle from other lenders to get a basis for comparison.
Just remember, if the lender is doing a ‘hard’ credit check against your profile, this will leave a mark and could lower your score.
Review your credit score
Speaking of credit scores, it’s important that yours is up to scratch when looking for favourable mortgage terms. Get a copy of your credit report and check it for errors or outstanding issues. Once you’ve done that, take some steps to improve your credit score, even if it’s by a few points. This could potentially save you some money on your mortgage renewal.
Understand your options
Be sure to familiarise yourself with the various mortgage options available to you. Depending on your own goals, you may want to explore some different terms. Is going onto a fixed rate right for you or would you prefer something more flexible? Do you want to shorten or extend your mortgage term? Now is the time to make decisions about these things and communicate with your adviser about your goals. They will be able to help you find a solution that suits your needs!
Communicate with your adviser
Don’t be afraid to reach out to your adviser well in advance of the renewal date. Speak to them about your plans and ask them about the options available. A mortgage adviser will be able to help you find a new deal that suits your particular circumstances. Remember, being proactive in your approach could lead to some positive outcomes.
Calculate your affordability
Use our affordability calculator to work out what you can afford with your current financial situation. This could give you an overview of what to expect when it comes time to work out monthly payments, interest rates, and loan terms.
This information should give you a more realistic idea of what to expect for your mortgage renewal.
Important FAQs
If you’re not sure about when your mortgage is up for renewal, the first step you need to take is to check your mortgage agreement or contact your lender directly. Lenders will usually send renewal notices well in advance, and may also offer important information like current interest rates and terms and conditions for renewal.
The decision to fix your mortgage will depend on several factors, including your own financial goals, risk tolerance, and market conditions. Fixed rate mortgages can offer stability, but if you believe rates may come down, a tracker mortgage could be a good option. Sticking on your lender’s SVR isn’t ideal long-term. If you’re unsure of what to do, speak to a mortgage adviser.
Getting professional advice
Are you ready to take control of your mortgage renewal in 2024? We can help you with that. By speaking to an adviser, we can help you monitor your mortgage, give advice about your next steps, and offer solutions to any questions you may have.
Remember, early preparation is essential, and we’re here to lend a hand with that too!
Let’s talk about your mortgage.