GETTING A MORTGAGE is a big step towards buying a home, and is definitely cause for celebration. Your mortgage deal might have been competitive when you first got it. However, by regularly reviewing your mortgage and remortgaging when an appropriate deal is available, you could save a lot of money, often amounting to thousands of pounds.
Remortgaging means moving your mortgage to a new lender while staying in the same property. If you’ve had your mortgage for a while, and you haven’t reviewed it, how sure are you that you’re still getting a competitive rate? At the very least, you should review your mortgage when interest rates change because this will affect how much you pay.
The base rate is set by the Bank of England and is important to homeowners because it acts as a benchmark for the cost of borrowing money – the lower the base rate, the lower the interest rates. We’ve started to see signs of inflationary pressures, which means when the base rate goes up, then inevitably, mortgage interest rates are likely to follow.
If you have been a homeowner for a few years and your fixed rate mortgage is coming to an end, your mortgage will revert to your lender’s standard variable rate (SVR) of interest. It’s important that you start speaking with your mortgage broker around four months before the end of the fixed rate period ending.
WHY REVIEW YOUR MORTGAGE?
- Despite the fact that we’ve benefited from historically record low interest rate levels, some interest rates have now started to rise.
- You could save a considerable amount by switching your mortgage rather than remaining on your current lender’s SVR.
- If your initial fixed rate mortgage scheme has come to an end, you may wish to switch mortgages to take advantage of a new fixed rate
- Fixing your mortgage rate to a new scheme will provide peace of mind and security in the event of further rate rises
- If your house has gone up in value a lower LTV remortgage may be available
Top five reasons why homeowners put off remortgaging
How long does a remortgage take with the same lender?
Mortgage product transfer vs remortgaging
STREAMLINING YOUR LARGEST DEBT
If you’re not tied in to a mortgage deal with early repayment penalties why not see how your current deal compares to new deals that have since come onto the market? If you do nothing when rates change or your mortgage deal ends, you might lose out to a more attractive deal.
Can you remortgage to pay off debt? – Remortgaging for debt consolidation is a popular option. It combines your unsecured debts into your mortgage arrangement so that you only have one monthly payment to manage.
What does debt consolidation mean?
Your mortgage is likely to be your biggest financial commitment. So it follows that streamlining your largest debt could produce the largest saving.
Why not contact a mortgage broker to see what rates are available for you.
