Can contractors lock in a remortgage six months in advance?

Last Updated: 02-10-2024

Reading Time: 5 minutes

In one of his most recent podcasts, Martin Lewis underlined how "crucial" it is to get on top of your mortgage finances. Part of that equation is knowing what you'll pay after your current mortgage deal expires.

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In a way that spookily echoes what we've already done, he urged homeowners to leverage the opportunity now presented to those due to remortgage.

Our 'rate monitoring service' allows homeowners to lock in their next deal up to six months before their current deal is due to expire.

This service is ideal for contractors. It gives them visibility into what they need to be earning with their successive contract to maintain a healthy budget.

But it extends to the regular self-employed and PAYE employed, too.

Here's more from that podcast, plus how you can leverage our 'win-win!' service to guarantee you'll pay no more for your remortgage than the best rate that's on the market today.

The biggest single takeaway from the podcast

Without copying the podcast verbatim, here's the most crucial quote from the whole episode, IMHO:

"If you don’t know when your rate ends, go get your diary out right now, find out when it ends and put a marker 6 months before that says: 'Mortgage time, start sorting it now'."

We really couldn't put it any more succinctly (or, conversely, directly) than that.

No longer the need to sit on the fence before striking a new deal

We know many of our clients have been holding out to remortgage. Many have even suffered their lender's SVR while awaiting lower rates.

At last, signs have begun to move in a positive direction. Some lenders have broken the sub-4% bookmark (albeit for specific criteria, including sizeable equity/deposits). But average mortgage rates are yet to filter down to anything like that.

What doesn't help is that many people are coming to remortgage off a substantially lower-rate deal than what's available. It's this causing the hesitancy we've seen for twelve months or more. 

I shudder to think how much some people must have paid to their lenders that they needn't have. But this herald from Martin Lewis should encourage homeowners to take action. 

Even if you're six months away from your deal expiring, begin the remortgage exercise now. With us, it's a simple process that guarantees you'll pay no more than the rate you lock in today.

Here's how our rate-monitoring service works

It's great to see the rest of the mortgage market catching up with Freelancer Financials' mortgage rate monitor service. We implemented the service several months ago with one of our most prominent partners. Now, we're rolling it out to the wider market. 

If you're interested in our rate-monitoring service, the first thing you need to do is request a callback from one of our experienced advisors. Select a time that suits you, and we'll call you back during that window.

Based on that conversation, we'll scour UK lenders to find a deal that best matches your circumstances. And, don't worry: we're 100% independent, so no lender is off-limits to us.

We'll prepare your quotation and, if you're happy, you lock in that rate once the lender has approved your application. After that's when the magic happens.

The win-win remortgage proposition

When you lock in your rate, that's the highest you'll pay for your remortgage. If the rate goes up, no problem. You pay the rate on the day you give us the go-ahead.

But what if rates fall, as is looking ever more likely? Again, we've got you covered.

We'll move you onto the lower rate automatically. So, it doesn't matter how many times the rate drops between you locking in your rate and the remortgage taking effect, we'll always move you to the lowest one available to you.

That's a win-win if ever I heard one. To register interest in this service, visit our sign-up page.


p.s. - if you're still not ready to commit, why not consider taking out an interim tracker mortgage? There are even trackers available with no early repayment charges. Check out Option 2: tracker mortgages, also on the rate monitor service page.

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Author: John Yerou

John Yerou is a pioneer of contractor mortgages and owner and founder of Freelancer Financials, Contractor Mortgages®, C&F Mortgages and Self Employed Mortgages, trading styles and brands of the award-winning Mortgage Quest Ltd.

Posted by John Yerou

on October 2nd, 2024 16:55pm in Mortgage Blog.