Rates Drop: Relief for Homeowners Renewing Mortgages in 2024

Homeowners may finally have reason to breathe easier in 2024. Over 50 mortgage lenders slashed rates at the start of the year, sparking optimism for those with mortgages expiring this year. Two-year fixed rates now average just 5.62%, down from 5.93% previously. But the biggest news is sub-4% rates available to homeowners with substantial equity in their properties.

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We understand many mortgages are set to expire in 2024. We want to provide information to help you secure the right deal given your situation. We’re here to assist you through each step of the process. We’ve put together a brief guide on getting “mortgage ready” to streamline the remortgaging process as much as possible.

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Why might I need a remortgage?

One of the most common reasons for a remortgage is that the term granted on an initial mortgage deal is coming to an end. Most mortgages are granted on an initial two-year or five-year period, and once this expires, many lenders will put you onto their default Standard Variable Rate (SVR) which can mean that you end up paying more than you need to, as the interest rate is sometimes higher than can be sought elsewhere.  

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For this reason, we’d advise that you get in touch with us, firstly, if you are in any doubt as to when your initial mortgage term expires, and secondly, for us to help you find a rate that may be more suitable for your own individual circumstances.  

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This can involve either a full remortgage, finding a new product with a new lender, or we can help arrange a product transfer, which is where we can put you onto the most suitable mortgage product with your existing lender. Either way, we’d recommend that you come to us for bespoke, professional advice on the most appropriate deal that fits your exact circumstances, especially as there’s so much at stake.  

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There are several things you can do to prepare for remortgaging in 2024:

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How to Get Remortgage Ready

We recommend taking the following steps to help smooth the remortgage process:

• Organise Finances – As when you first sought a mortgage, having tidy finances can help to boost the odds of acceptance. Check your credit score. Avoid new loans or credit cards. Major purchases can also hurt. Payday loans and overdrafts are especially damaging. Knowing your property’s estimated market value helps too – browse similar listings.

• Gather Documents – Like the initial mortgage, you’ll need paperwork to verify identity, address and income. Save time by having these ready. Include your last 3 bank statements and pay stubs, proof of bonuses, latest tax form P60, ID such as passport, and proof of address, such as utility bills for example.

• Self-Employed – Provide 3 years of income history. Showing future workload and revenue helps to aid your application.

• Plan Ahead – Contact us around 6 months before your current mortgage expires. This gives enough time to help find the most suitable new deal. We’ll remain in touch throughout to update you on next steps.

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This should help to give you a good headstart on having the key documents and info you need ahead of a remortgage. We’re here to support you every step of the way, so if there’s any queries you have, just ask us and we’ll be happy to help.

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It’s not always easy to know what’s right for you and your circumstances, so that’s where the value of professional mortgage advice comes in. We’re here to listen to your exact situation and to recommend the products that we believe are the most appropriate for you based upon looking at a wide range of lenders and exclusive deals that aren’t available on the high street.  

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If your mortgage deal expires this year, your lender will likely contact you about transferring to a new product. However, we recommend seeking our experienced, professional advice before accepting any offers. We want to help you find the option that serves your interests, not just the lender’s. We’re more than happy to arrange both product transfers and remortgages, but pride ourselves in listening to your exact situation before giving bespoke advice that’s tailored to you.

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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

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All the information in this article is correct as of the publish date 25^th January 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

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