There are certain periods in life when you need to focus on a mortgage. Have there been events in your personal life? Are there external market developments that could affect your mortgage? Klår Finance explains why it’s time to think about rebuilding your home.
Why do you have to re-mortgage?
Interest rates have risen recently. This means that for many people, it may be time to think about re-mortgaging. This is usually done for one of the following reasons:
- Better conditions (such as a more suitable type of mortgage for your situation).
- Cheaper mortgage (subject to any one-time re-mortgage costs).
- More confidence in the future.
- Higher mortgage for options to repair or improve the sustainability of your home.
Why re-mortgage now?
Interest rates have been falling for a long period of time. However, from the beginning of 2022, interest rates began to rise. In this short period, interest rates have reached the same level as in 2019. Despite this increase, it should be borne in mind that the current interest rate is still very low historically.
The interest rate is an important aspect of your mortgage, as it also plays a big role in determining the amount of your monthly payments. In addition, it is projected that interest rates will rise in the near future. This is partly due to current events in the world, namely the influence of COVID, as well as the Russian invasion of Ukraine. Given this, one could spend some time to fix your interest at a lower level, for a longer period.
How to pledge your home?
Are you interested in resetting? Or do you want to have an accurate overview of your options? You should then talk to a mortgage consultant.
Resetting begins with an extensive inventory of your current situation. Here are some questions to consider:
- How long do you expect to live in your current home?
- Do you have any repair plans?
- Do you prefer to have financial security or are you happy to take risks?
With your contribution (from the above issues) your advisor will start delving into your current mortgage. Is there a penalty with your current lender (depending on your current interest rate and fixed interest period)? Are there additional costs (assessment costs, notary costs, consultation costs)? Finally, they will discuss your possible re-betting options.
Klår Finance is more than happy to help with the re-betting process. Klår advisers will begin by discussing the opportunities presented at the “get to know you” meeting. You will then receive a personal examination within four days. This will give you transparency and understanding, and so you will be able to focus on the important again.