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 usually very little time is spent making sure it’s right for your personal situation.
That’s why it’s time for a mortgage review.
How important is a mortgage review?
The mortgage review is really important. Reviewing your mortgage every now and then can save you hundreds or thousands of pounds in interest. It’s 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 rather than go through the stress of moving. Avoid heavy stamp duty as well as the emotions of going through a move.
Standard Variable Rate (SVR)
If you have not had a recent mortgage review, it is very likely that you are on your lender’s SVR.
When your fixed rate mortgage deal ends, you’ll switch to your lender’s SVR rate. However, this will usually be a higher percentage; you pay more for flexibility.
Fixed rate mortgage deals usually come with equal terms. However, with SVR, it’s very likely that you won’t have to pay switching fees to get a better deal.
Which means you are free to see a mortgage broker to search the market and switch.
High capital options
As home prices increase, if you’re lucky enough to have a lot of equity, there may be better mortgage deals available to you.
Mortgage interest rates are based on loan-to-value ratios, as a general rule, the more equity you have, the lower the interest rate will be. You may also have options to raise capital if you wish.
It is very popular to remortgage to raise money for a new kitchen, extension, remodeling and/or windows and doors.
Little equity
If you’re a relatively new homeowner or your property hasn’t yet appreciated 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.
The true cost of a mortgage transaction
The mortgage deal with the lowest interest rate isn’t always the best.
A good mortgage broker will calculate and compare the cost of a remortgage and compare it to doing a product transfer with your current lender.
#important #review #mortgage