Just received an email from the agency we rent via and they have requested access for a surveyor as the landlord wishes to re-mortgage.
When we signed our contract, we were aware that the landlord had previously tried to sell and the agreement came with a 6 month break-clause so it’s always been made aware to us but I’m interested as to why they would remortgage?
I would understand if they were looking for a valuation as that would be pretty straight forward and obvious but if they are looking to remortgage, is it because they are planning on keeping the property? We adore the flat and the area so we would love to stay well past our original 12 months but knew the reality when we committed to the property.
Any insight would be greatly appreciated.
9 comments
>why they would remortgage?
Only your landlord knows this
They’re probably buying a new property, might not change anything in your life if they have another property they live in
They could re mortgage because
End of a fixed term
Release equity
Pay off a large chunk of debt
Get a better rate
Many other reasons that are nothing to do with you.
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If their fixed rate has finished they’ll remortgage. Nothing strange about that. Their rate is likely to be higher than before so your rent will probably go up to cover it.
They’re probably just re-fixing with a different lender because it’s cheaper than their existing lender.
Be aware, rates have risen and your rent might too at the next review.
If they’re looking to remortgage rather than sell, then yes they’re keeping the property. Remortgage is a perfectly normal activity in the UK market and happens when people reach the end of their deal period, can also happen when the owner wants to unlock some equity.
If it’s just for a remortgage you have nothing to be concerned about; depends how much you trust your agents.
People are remortgaging like hell at the minute because of the predicted rate rise- ie they want to fix their payments. I’d say it was more likely they were not intending to sell as most mortgages include penalties for early repayment.
It could be the end of the fixed term section of their mortgage and they’re looking to get another deal before rates sky-rocket. That’s what I’d be doing with my own mortgage if it was due for renewal soon.