Quite a few people in Didcot fixed their mortgage in 2021 or 2022 when rates were still very low. If you were one of them and took a five-year fix, that deal is likely ending soon or may have already ended. For a lot of households the new monthly payment is going to be noticeably higher than what they've been used to, and the gap can come as a bit of a shock if you haven't planned for it.
There are things you can do to prepare. Here's what's worth knowing.
You can start looking before your deal ends
Most lenders will let you lock in a new rate up to six months before your current deal ends, without triggering any early repayment charges. Starting the process early means you have more time to look at what's available and aren't making rushed decisions as your deal expires.
When your fix ends, you roll onto the lender's Standard Variable Rate. SVRs are typically higher than fixed deals available at the time, though the right approach for your situation depends on your individual circumstances and what's on the market when you come to switch.
Remortgaging and borrowing more at the same time
Some homeowners use a remortgage as an opportunity to release some equity for a home improvement project. Extensions are popular in Didcot, particularly on Great Western Park where the houses lend themselves well to rear extensions. Whether that's appropriate for your situation depends on your personal circumstances, including how much equity you have, your income and the lender's criteria. It's worth raising it as part of your remortgage conversation so everything can be looked at together.
Frequently Asked Questions
Most lenders will let you secure a new rate up to six months before your current deal ends, without triggering any early repayment charges. Starting the process early means you have more time to understand what's available and aren't making rushed decisions as your deal expires. The right timing can vary depending on your lender and the terms of your current deal, so it's worth checking your specific situation with a broker.