When you come to remortgage, you can typically lock in a mortgage deal up to six months before your current deal ends to give you plenty of time to get one sorted.
If you own a leasehold property – where you own the property, but not the land it is on – this can involve having to get documents from the management company, such as information about your insurance or service charges.
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However, a number of experts and homeowners have reported that getting the required information from these companies is taking months, or in some cases is proving impossible to get hold of at all.
SVRs are typically much higher than fixed-rate or tracker mortgage deals. The average SVR is currently 7.32 per cent, according to Moneyfacts, while a typical two-year fixed rate stands at 4.96 per cent.
Michelle Lawson, director at mortgage brokers Lawson Financial, said she has seen these delays affecting clients, and has often had to intervene and push the management companies herself.
“Standard variable rates are anything from 6 to 10 per cent at the moment, which relates to much higher mortgage payments for borrowers, adding hundreds of pounds to their outgoings while everyone else pushes paper around.”
“Housing associations or management companies can take a huge amount of time in replying each time information is requested, which is painful for all involved, especially the borrower,” he said.
“Lenders can often be over-zealous in what information they are asking for, which amplifies the problem,” he added.
How to avoid delays when remortgaging
They may then contact the management company directly to ask for the required information, which could speed things up.
Karen Noye, mortgage expert at Quilter, said: “Anyone approaching the end of a fixed deal should consider securing a new rate early to avoid moving onto a more expensive standard variable rate.
Lawson added: “Apply for your remortgage at the earliest opportunity to allow time to get this completed before your product ends.
It is a good idea to be aware of what you will need in advance before you start the remortgaging process.
If you are remortgaging a leasehold, you will likely need the following documents from your management company:
Information about ground rent and services charges Information about any expected increases in ground rent or services charges Buildings insurance details about the block or house you live inHence then, the article about the paperwork delays costing leaseholders thousands of pounds was published today ( ) and is available on inews ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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