Why is it important to review your mortgage?
Be honest, how much time do you spend thinking about your mortgage? A mortgage is one of the biggest commitments of your life, and very little time is usually 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. Reviewing your mortgage from time to time can save you hundreds or thousands of pounds in 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. Avoiding high ring rates and also the emotions of going through a move.
A standard variable rate (SVR)
If you have not had a recent mortgage review, you are most likely in your lender’s SVR.
When your fixed-rate mortgage agreement is finalized, you will move to your lender’s SVR rate. However, this is usually a higher rate; you are overpaying for flexibility.
Fixed rate mortgage deals usually come with tying periods. However, at SVR you most likely won’t have to pay any exchange fees 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 home prices rising, if you’re lucky enough to have a lot of equity, there may be better mortgage deals available to you.
Mortgage rates are based on loan-to-value ratio; As a general rule, the more principal you have, the lower your interest rate will be. It may also have capital increase options available to you if you need it.
It is very popular to re-mortgage to raise money for a new kitchen, addition, conversion and/or windows and doors.
If you’re a relatively new homeowner, or if your property hasn’t appreciated yet, there may still be money-saving options with your current mortgage lender. Usually, if you’ve kept your payments up to date, etc., there will be product transfer offers available.
True Cost of a Mortgage Deal
The mortgage deal with the lowest interest rate is not always the best.
A good mortgage broker will estimate and compare the cost of a new mortgage and compare it to doing a product transfer with your current lender.