Mortgage payments are often a significant expense for many people, with the responsibility often taking up a substantial amount of a person’s income. Difficulties have ensued within the last year as many have faced job losses and furlough as a result of the pandemic. But as Britons feel the squeeze in other aspects of life, mortgages could be set to become a more significant financial burden.
“It’s vital they avoid falling onto a reversion rate and paying more when there are other options available.
“COVID-19 may have dampened the confidence of a large number of borrowers wanting to lock into a new rate, yet the cost of not exploring their refinance options could be significant.
“Even for those borrowers who have seen a reduction in income, there may well be products available that would save them money in the long term when compared to their lender’s SVR.”
Some 52 percent of borrowers who have seen their income reduced as a result of the ongoing crisis are now concerned lenders will scrutinise their finances in more depth compared to pre-COVID levels.
“The UK also has a thriving specialist lending sector designed to help borrowers with complex circumstances, from the self-employed to those who might have experienced a credit blip.
“Many can only be accessed through speaking with an independent adviser who could help these borrowers to save thousands of pounds in their mortgage repayments.”
For homeowners who have seen their finances adversely impacted by COVID-19, Legal and General have urged action.
Exploring and understanding the mortgage options available, the club has stated, is essential to ultimately finding better alternatives which may be on the table.
It is thought over 700,000 borrowers who will reach the end of their two and five-year residential fixed-rate mortgages in 2021 will be affected, showing the importance of acting sooner rather than later.
For those who are hoping to shop around for a better deal, there are a number of price comparison websites who can help.
Alternatively, Britons may wish to speak to a mortgage broker who can provide further insight into individual circumstances.