Be honest, how much time do you spend thinking about your mortgage? A mortgage is one of the biggest commitments of your life and usually, very little time is spent making sure it fits your personal situation.
This is what it’s time for a mortgage review.
How important is a mortgage review?
A mortgage review is really important. Reviewing your mortgage from time to time, may save you hundreds or thousands of pounds of interest. It’s also a good time to review your mortgage term. Potentially, to maintain the same payment while reducing the number of years.
Our lives are changing, more and more people are looking to improve their current home rather than going through the stresses of moving. Avioding heavy stamp duty fees and also the emotions of going through a move.
A standard variable rate (SVR)
If you haven’t had a recent mortgage review, it’s highly likely, that you’re on your lenders SVR.
When your fixed rate mortgage deal ends, you’ll roll on to your lenders SVR rate. This will usually be a higher rate however; you are overpaying for flexibility.
Fixed rate mortgage deals usually come with tie in periods. However, on SVR it’s highly likely you won’t have any switching fees to pay to get a better deal.
Meaning, you’re free to see a mortgage broker to search the market and switch.
High equity options
With house prices increasing, if you’re lucky enough to have lots of equity there may be better mortgage deals will be available to you.
Mortgage rates are based on loan to value ratios, as a rule, the more equity you have, the lower your interest rate will be. You may also have capital raising options available to you if you require.
It’s very popular to remortgage to raise money for a new kitchen, extension, conversion and/or windows and doors.
If you are a relatively new homeowner, or your property has yet to increase in value, there may still be money saving options with your current mortgage lender. Usually, if you’ve kept your payments up to date etc product transfer deals will be available.
True cost of a mortgage deal
The mortgage deal with the lowest interest rate isn’t always the best one.
A good mortgage broker will work out and compare the cost of a remortgage and compare it with doing a product transfer with your current lender.