A mortgage is one of the biggest commitments of your life and, in general, very little time is spent making sure it fits your personal situation.
This is what it is time for a mortgage review.
How important is a mortgage review?
A mortgage review is really important. Checking your mortgage from time to time can save you hundreds or thousands of pounds of interest. It is also a good time to review the term of your mortgage. Potentially, to keep the same payment while reducing the number of years.
Our lives are changing, more and more people are looking to improve their current home instead of going through the stress of moving. Avoid the high rates of stamp duty and also the emotions of going through a movement.
A standard variable rate (SVR)
If you have not had a recent mortgage review, it is very likely that you are in your lender’s SVR.
When your fixed rate mortgage agreement ends, it will go to the SVR rate of your lenders. However, this will generally be a higher rate; You are overpaying for flexibility.
Fixed rate mortgage offers generally come with linked periods. However, in SVR it is very likely that you do not have to pay any exchange fee to get a better deal.
That is, you are free to see a mortgage broker to search the market and change.
High equity options
With the increase in housing prices, if you are lucky enough to have a lot of capital, there may be better mortgage offers available to you.
Mortgage rates are based on loan / value ratios, usually, the more capital you have, the lower your interest rate will be. You may also have capital increase options available if required.
Remortgage to raise money for a new kitchen, extension, conversion and / or windows and doors is very popular.
If you are a relatively new owner or your property has not yet increased in value, there may still be money saving options with your current mortgage lender. Generally, if you have kept your payments up to date, etc., there will be offers to transfer products available.
True cost of a mortgage agreement
The mortgage agreement with the lowest interest rate is not always the best.
A good mortgage broker will calculate and compare the cost of a new contract and compare it to a product transfer with your current lender.
A trusted mortgage broker in Manchester (like us) will be able to calculate the “real mortgage cost” for you.
We may take into account your personal situation, your credit history, the mortgaged property, the valuation fees and any settlement fees that must be paid and recommend the most appropriate one for you!