| Financial Guidance

Financial Guidance:
Re-mortgage alternatives for "Happy Trackers"

Since the FCA and the EU commission triggered the launch of new affordability measures in the UK, the resulting "Mortgage Prisoners" have had a lot of coverage. And rightly so! Being locked out of better and cheaper deals on the basis of affordability, is not in the best interest of UK consumers.

The FCA appears to be making progress on the matter but in the meantime, “Mortgage Prisoners” aren’t likely to be shopping for a different mortgage deal, although some do have the option to re-mortgage with their existing lender which is good progress.

But, there’s another group of people that won’t be shopping for another mortgage deal, but they don’t get any press. As such we’ve had to coin our own term for them – “Happy Trackers”. With base rates at a historic low, and possibly dropping lower, a section of the mortgage population will be feeling a little bit smug right now. That’s because they’re enjoying out-dated base tracker deals that have seen their monthly repayments plummet to an all-time low - in some cases, even lower than 1%!

But it’s not all good news. Unlike their less-happy counterparts, when they’re looking to make costly home improvements, pay down high interest unsecured debts or perhaps fund their own business, a further advance on their existing mortgage is a definitive no-go. But what some “Happy Trackers” may not know, is that consumers can have multiple mortgages, although rarely more than two.

The second mortgage market enjoys very little consumer awareness and as such, “Happy Trackers” may well have been blindsided into dismissing home improvement ambitions, or shopping for funds in the “regular” unsecond mortgage market, which is often unsuited to larger sums (assuming they’re attainable in the first place).

If you would like to learn more about second mortgages, or second mortgages as they’re otherwise known, we’ve explained them simply on our second mortgages explained page. Alternatively, the Loan.co.uk team would be very happy to answer any questions – you can contact us on
0800 131 0280.

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