It’s been recently highlighted that in the last two years, almost half of millennials (46%) remortgaged without seeking any mortgage or financial advice.
Millennials lacking financial confidence
The data shines a spotlight on the fact that many 25 to 44-year-olds are not much more confident in managing their financial affairs than those who are aged 18 to 24; 12% responded with “not at all” or “not very” when it came to scoring confidence in managing their own money matters. This is only 1% less than those in the age bracket below.
Despite this lack of confidence, only 52% have remortgaged through an adviser in the last two years.
There were further statistics that showed the need for millennials to have greater knowledge surrounding remortgaging. Only 66% claimed that they would read the mortgage conditions thoroughly before signing the contract, despite 37% admitting that they have a “fairly” or “very” bad understanding of the mortgage process itself.
And when it came to understanding the language and jargon used surrounding financial products, 33% said they lacked self-confidence.
What does this tell us?
Well, we may expect those in the millennial bracket of approximately 25 to 44 years old, particularly those who are at the upper end of it, to have a better understanding of these kinds of financial processes. Yet the data would suggest that moving from the youngest age bracket of homebuyers to the next one up does not automatically mean sudden confidence and ability to make all financial decisions unaided.
If there are areas where there is a lack in knowledge the best thing to do is to gain sound financial advice. Consider connecting with your original mortgage broker or reaching out to a new adviser who may be able to source you a better deal.
When is the best time to remortgage?
When a fixed-term deal comes to an end, homeowners are usually put onto the lender’s standard variable rate, which is typically more than they have been paying. It may be possible to save hundreds of pounds a year by switching to a new fixed-term deal.
The new year can be a busy time for the mortgage industry as homeowners begin to revaluate their financial situation following Christmas and may decide to seek out new, more affordable deals.
If you know your current mortgage term is coming to an end, it’s best to get in touch with a mortgage adviser three to four months in advance, although if you have less time left, it’s never too late to get started and you could save money in the end.
How we can help
Our specialist mortgage business, B Mortgage Services, can offer expert advice and search for the best deal using a whole-of-market approach. Our brokers have decades of experience between them and gain frequent 5-star reviews on VouchedFor.