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30th June 2021

Removing the Rigmarole of Remortgaging

While the UK’s societal lockdowns were originally introduced to flatten Covid-19’s infection curve, they have also had the unexpected impact of heightening activity in the residential sale and purchase market.

A property boom – sparked in part by “stay at home” instructions giving people plenty of time to tire of their existing four walls and re-evaluate their residential choices and fuelled by the Chancellor’s stamp duty holiday – has driven interest rates for borrowers to a record low, creating favourable fiscal conditions for even those with no intention of moving.

Homeowners staying put but currently on formerly appealing mortgage deals can capitalise on incredibly attractive two- and five-year fixed terms, with a number of lenders offering sub one per cent mortgages to those with 40 per cent deposits.

Those who have saved money as a consequence of abandoned holiday plans or a dramatic drop in expenditure due to fewer opportunities to spend in pubs, shops and restaurants can also improve the health of their finances further by considering a switch to an offset mortgage.

These deals work by reducing the amount of the loan that a borrower pays interest on by putting any cash reserves into a linked account. While doing so earns no interest, any money is offset against borrowing, which reduces repayments, and – unlike opting to pay a lump sum off a mortgage – has the advantage of keeping cash readily available in the event that it is required for another purpose. 

With savings rates remaining negligible, such deals represent a prudent means of making any spare money work hard for its household and can significantly reduce the overall term of a mortgage. 

Aside from a healthy reduction in monthly repayments and more satisfying bank statements, the pandemic has provided plenty of other reasons to ponder remortgaging.

For many, more time at home has turned up the intensity in the “house proud” stakes, with property owners given ample opportunity to notice imperfections and dwell on delayed or incomplete renovations.

The closing of workplaces also saw the desire for domestic desk space rocket and home offices have been elevated to the top of a lot of families’ must-have lists.

Such upgrades – be they large furniture items, room reconfigurations, extensions or garden overhauls – can be expensive but the prospect of securing equity at incredibly low rates can make life’s desirables do-able. 

Similarly, those needing money to support a family member disadvantaged by coronavirus or wishing to gift cash to a loved one so that they can buy a place of their own, can remortgage to secure lump sums while cash is cheap to borrow. 

Regardless of the driver, remortgaging often makes more sense than simply switching products with an existing lender at the end of a current deal. There are often more competitive rates available but switching does require the assistance of a solicitor. This, however, does not entail a repeat of the steps involved in purchasing a property, which for some evoke memories of a frustrating and time-consuming period.

It is certainly not the case if you choose to have the team at PLS Solicitors manage the legal aspects of your remortgage. As great believers in minimising the burden and stress on our customers, we have removed the rigmarole or remortgaging by embracing technology.

Our fully-compliant digital processes allow for all client paperwork to be completed remotely using either PLS’ app or portal and cases to be perfectly tailored to meet the needs of customers. This convenience is complemented through our integration with the Land Registry, which automatically takes care of any necessary checks and balances.

No matter the motives for considering a remortgage, appointing PLS to take care of your conveyancing requirements can quickly and cheaply help you realise an array of post-pandemic plans.

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