With banks tightening criteria and lenders still reluctant to agree many mortgages, a recent survey has found that the demand for high net worth remortgage advice is rising.
If you have a large mortgage and are looking to get bespoke, tailored advice then you should consider a specialist broker. Keep reading to find out why more and more people are seeking advice from an expert before signing up to a remortgage.
High net worth remortgage advice sought after
The survey from the leading professional website unbiased.co.uk found that homeowners looking for remortgage advice accounted for 35 per cent of all mortgage-related searches in May 2012, compared to 30 per cent at the same time last year. And, a separate poll by the Yorkshire and Clydesdale banks found that more than one in ten Brits plan to get to grips with their mortgage over the next 12 months.
Finding the right remortgage has become harder over recent years. There are now fewer lenders in the market than four years ago and those that remain have made significant changes to their lending criteria. In addition, the number of remortgage deals with free legal fees and free valuations has also fallen in the last four years.
On two year fixed rate products, financial analysts Moneyfacts recently found that the number of deals offering free legal fees has fallen from 53 per cent to 47 per cent. The number of remortgage deals offering free valuations has fallen from 51 per cent to just 44 per cent.
Hugh Wade-Jones, director of London mortgage advisor Enness Private Clients, says: “Clients with large mortgages often have very individual needs and require bespoke advice. In 2012, it’s not as simple as calling up a ‘best buy’ lender and expecting to transfer onto their best remortgage deal.
“As a broker, our job is to provide professional advice to high value mortgage clients. That doesn’t just involve finding the right interest rate but also means finding a lender that is prepared to take a client’s specific circumstances and needs into account.”
“I’m therefore not surprised that more and more high net worth finance clients are seeking specialist mortgage advice.”
Remortgaging can save thousands on large mortgages.
Over recent months lenders including Halifax, Bank of Ireland, Yorkshire Bank, RBS and Co-operative Bank have increased their standard variable rates, leaving many borrowers with higher mortgage payments.
Mr Wade-Jones urges clients to speak to a broker to get the right mortgage advice. He adds: “If you have a £1.5 million mortgage and you’re paying even 0.25 per cent more than you should, that is costing you £3,750 a year in interest. With many remortgage deals offering even more significant savings, the benefits to large mortgage clients are huge – even if there may be some fees to pay for switching lender.”
Steve Reid, director for Clydesdale Bank agrees. He says: “People often only think about changing mortgage when they move but even those that are very settled in their current home can remortgage to ensure they have the best mortgage for their needs.”