Do you need a new mortgage?
There are lots of reasons why you might need a new mortgage, especially if you’re within six months of your current term ending. You might be able to remortgage your home by replacing your current deal with a more suitable one. You could be looking for a mortgage to buy a new property. Whatever your reason, the good news is that the mortgage market is recovering and there are plenty of deals available.
Mortgage rates fell earlier this year as a response to the Bank of England lowering the base interest rate. As a result, new mortgages are on the rise with 63,000 approvals so far this year. Gross mortgage lending reached £20.4bn in May, which is £16.9bn higher than the previous month and further rate reductions are anticipated later this year (OnTheMarket). So, what does this mean for those looking for a mortgage deal and how do you find one?
New mortgage or remortgage?
Usually, a new mortgage is needed for a new property, rather than an existing one where a remortgaging deal might be more suitable. However, this will depend on the circumstances and why the mortgage is needed.
Instead of a new home, you might be buying a second property, either as a holiday home or buy-to-let. If you intend to rent the property out, then you will need a specific type of mortgage. Regardless of the mortgage type, lenders run affordability checks to help them assess whether you can make the monthly repayments.
However, since the start of this year, many lenders have eased their affordability criteria. Mortgage holders are now able to borrow 20% more than they could at the start of 2025. The hope is that this will increase transactions in the second half of this year and into 2026.
Is remortgaging a house a good idea?
If your current mortgage term is coming to an end, your mortgage adviser might suggest remortgaging your house. This is where you change your existing mortgage by negotiating as new deal or switching lenders.
In some instances, remortgaging could offer advantages in terms of better rates or access to cash. You would need to check whether your current lender charges early repayment fees, so always get professional mortgage advice before switching.
For more information on this topic, see our blog Should you consider remortgaging your home?
Get mortgage advice
Thinking about remortgaging? From finding a better deal to debt consolidation, switching your current mortgage deal could help to lower your monthly repayments and free up some cash. However, if you are buying a new or second property, then you will need a new mortgage. Before you commit to a deal, speak to our experienced mortgage advisers.
At Bubble Finance Hub, we provide holistic, whole of market mortgage advice, and we can source deals from a large panel of lenders and providers. Our team have access to exclusive mortgage rates you may not find elsewhere, as we’re a member of the Legal and General Mortgage Club. Our mortgage advice will be tailored to your exact circumstances.
If you need a new mortgage or you’re thinking about remortgaging, get in touch to book an appointment.
Your home or property may be repossessed if you do not keep up the repayments on your mortgage.
You may have to pay and early repayment charge to your existing lender if you remortgage.
Thank you for reading our blog, Do you need a new mortgage?
Bubble Finance Hub