Why taking advantage of the remortgage bubble could help your staff save hundreds of pounds a month
Traditionally, the financial education provided by employers for staff, has tended to stick to pension and savings advice. However, by providing financial education that goes beyond this, employers can help reduce some of the day-to-day financial worries that are impeding their staff’s ability to work most effectively.
Time to offer a wider financial education programme
Some staff may be unaware that making changes to their mortgage could help them save a sizeable amount every month. By including mortgage advice as part of a wider financial education programme, companies can ensure that their employees have easy access to the best possible mortgage advice, meaning that in some cases, those who previously had little knowledge about remortgaging, could end up saving hundreds of pounds a month.
The time to act is now. 2019 has seen a large number of fixed rate deals expiring, after homeowners previously took advantage of low rates a few years ago. Rates are once again at record lows, and as mortgage lenders compete for market share, there are some great deals to be had – creating a remortgage bubble that employees need to catch before it bursts.
Many have already done so. In August more than 30,000 remortgage loans were taken out, the highest monthly total since November 2017, according to data from UK Finance. Further, LMS figures published in September showed that more than nine out of ten borrowers (96%) opted for a fixed rate mortgage in the second quarter of the year. 70% did so to get certainty over their monthly payments, while 18% were concerned about the economic climate and wanted to lock-in a good rate. Both findings go to show that people are keen to snap up deals on low interest rates and have that stability continue for the next few years.
This means that getting the right advice has never been so valuable. Employees who are coming to the end of their fixed terms could face big increases in their monthly repayments if they don’t seek advice and review their mortgages soon.
Help your staff to discover how they can save
By offering at-workplace mortgage advice meetings, employers can help to encourage their employees to seek advice, which can allow them to identify whether remortgaging is the right choice for them. Employees should be encouraged to talk to an advisor in plenty of time prior to the expiry of their mortgage product, ideally at least three months before, to ensure they avoid ending up on the lender’s standard variable rate and to maximise potential savings.
Current low rates and market competition mean it’s a good time to fix, despite the political uncertainty. Employees simply need guidance as to where to get expert mortgage advice, leaving them free to get on with their job and be less stressed about their mortgage and overall finances.
This article is provided by Charles Cameron & Associates.
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