Restrictions on movement implemented to stem the spread of the pandemic have prompted a major rethink among vast numbers of homeowners about how and where they want to live. However the economic outlook remains uncertain and rates on remortgaging products remain ultra-low. Tim Woods, partner and head of our Country Team, outlines what borrowers need to consider, whether they decide to move or stay put.

Since the lockdown we’ve been considering moving to a home with more outdoor space, but the economic outlook is so uncertain so we’re tempted to stay put. What do our options look like for remortgaging at the moment?

The remortgage market right now is offering some of the lowest rates we’ve ever seen. There’s competition among the lenders that we weren’t expecting to see post-Covid and with the base rate still at a record low 0.1% there have been few better times to lock in a new deal.

We’re finding most borrowers are looking for fixed rates for two or five years and there is a lot of product variety at that level.

We’ve heard the market is very busy at the moment, is that likely to affect us?

There is definitely an issue with the lenders at the moment in terms of turnaround times. Some lenders have restricted the amount of business they will do on a daily basis, meanwhile others are raising rates slightly to ensure they aren’t the cheapest on the high street. That’s essentially another way they stem the flow of business to a more manageable level.

If you have a reasonable lead time for when you need to refinance then you should take advice now. Let’s refinance on the best deal in the market right now, get the offer in place, then reassess nearer your deadline.

Given that mortgage offers typically expire after 6 months, starting the process 7 months before the end of your current arrangement allows plenty of time.

Is this the case if we decide to move home instead?

Even more so. The housing market is particularly busy and, as a result, many purchasers are finding themselves in competitive bidding situations. In order to win the bid, it isn’t just about your offer, it’s about your ability to proceed.

Given what I’ve already said about how busy lenders are, if you’d like to purchase a home it’s even more important you get your paperwork together as soon as possible. It isn’t uncommon in this market for sellers to request you exchange contract within 28 days of an offer being agreed and that would only be possible if you’ve got an agreement in place with a lender.

If you are considering a move, or need to remortgage and would like to discuss your options, do get in touch.