Why It’s Important to Review Your Mortgage?
Be honest, how much time do you use 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 its time for a mortgage review.
How important is a mortgage review?
A mortgage review is really importnant. Reviewing your mortgage now and then, may save you hundreds or thousands of pounds of interest. Its also a good time to review your mortgage term. Potentially, to continue the same payment whilst reducing the number of years.
Our lifes are changing, more and more people are looking to enhance their current home instead of going by the stresses of moving. Avioding heavy stamp duty fees and also the emotions of going by a move.
A standard variable rate (SVR)
If you havent had a recent mortgage review, its highly likely, that youre on your lenders SVR.
When your fixed rate mortgage deal ends, youll roll on to your lenders SVR rate. This will be usually a higher rate however; you are overpaying for flexibility.
Fixed rate mortgage deals usually come with tie in periods. However, on SVR its highly likely you wont have any switching fees to pay to get a better deal.
Meaning, youre free to see a mortgage broker to search the market and switch.
High equity options
With house prices increasing, if youre lucky enough to have lots of equity there may be better mortgage deals will be obtainable 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 obtainable to you if you require.
Its very popular to remortgage to raise money for a new kitchen, extension, conversion and/or windows and doors.
If you are a comparatively new homeowner, or your character has however to increase in value, there may nevertheless be money saving options with your current mortgage lender. Usually, if youve kept your payments up to date etc product move deals will be obtainable.
True cost of a mortgage deal
The mortgage deal with the lowest interest rate isnt 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 move with your current lender.