Switching a Mortgage to a Lower Interest Rate

Switching a Mortgage to a Lower Interest Rate

Case Study: With interest rates climbing to their highest levels since the 1980’s, many UK homeowners will encounter difficulties in meeting their monthly mortgage payment. It is therefore essential that if you think this may happen to you that you explore moving your mortgage to a different provider who offers a better rate, sooner rather than later.

switch mortgage interest rateManchester Mortgages received a phone call on Friday 15th July 2022 from a potential new client who wanted to change the terms and conditions of their current mortgage (their current fixed rate was ending) with NatWest, and they wanted to move to a lower interest rate.

The client was also wishing to pay off a lump sum of their mortgage and then reduce the mortgage term.

After a detailed conversation with us it became apparent that what they were looking to do was not possible with NatWest, who did not provide the mortgage product they were looking for.

Another big problem was the time frame. Due to the interest rate rises, the waiting list for a telephone appointment with NatWest was 54 days. For a face to face appointment it was even longer.

This problem is not just with NatWest but with all major lenders at present. The situation is expected to get worse.

A video call between ourselves and the client was arranged for the following day, Saturday 16th July so that all options could be fully discussed by assessing all the available lenders, not just NatWest.

Our recommendation was to move the mortgage to a new lender who would offer better terms than NatWest, allow the clients to payoff a lump sum and reduce the mortgage term, all which met our new clients requirements.

The application was sent to the new lender on Monday 18th July  and on Tuesday 19th July the mortgage offer was issued meaning that the finance will be in place at the end of their current fixed rate mortgage with NatWest.

The adviser at Manchester Mortgages was also able to discuss the clients existing Buy to Let mortgages where the fixed rates were ending in December 2022.

Manchester Mortgages has two new happy clients who have the security of knowing that their mortgage payments will be fixed for the next 5 years.

So if you have any questions regarding your current mortgage terms and conditions and options available contacting your existing lender may not be the best option as it may be like the example above 54 days before you can speak with somebody.

Contact Manchester Mortgages today on 0161 706 0242 or email info@manchestermortgages.co.uk to discuss your remortgage options even if your current rate is not due to end.

Manchester Mortgages also provides advice to First Time Buyers, Home Movers, Buy to Let mortgages and can advise on all the UK lenders.