A review of your mortgage should be something you look at every couple of years. There are times, like now, where mortgage rates plunge and it opens up the opportunity for you to save hundreds, maybe even thousands of pounds on your current mortgage rate.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Why should you review your mortgage now?
Rates are currently incredibly low we can’t be sure how long these rates will stay down for. Shopping around is never a bad thing. Yes, it can be time consuming, but whilst rates are remaining low for now, the sooner you act, the more chance you have to get a better deal for your property. Now is an ideal time to review your mortgage.
Yorkshire Building Society’s analysis of market data found that some homeowners whose deals are coming to an end this autumn could potentially save around £200 a month by remortgaging.
Search for a deal to free your finances
For most people, owning your own home and taking out a mortgage is the biggest financial commitment you’ll make in your lifetime – it’s also probably one of your largest outgoings each month. For this reason, getting a new deal on a mortgage rate could have a positive effect on your finances.
A better rate could be just around the corner
It’s a big decision to remortgage. A few reasons why you may want to look into a mortgage review:
- Your current mortgage deal is coming to an end
Often great mortgages only last for two to five years. It’s the typical amount of time agreed on a fixed rate, tracker or discount mortgage deal. Once the term has ended, it’s likely that your lender will put you on their standard variable rate (SVR) which commonly is a higher rate than the deal you started out with.
- You’d like a better rate
Your current lender may try produce a better deal for you, but don’t be discouraged from having a mortgage review even if you may have early repayment charges or exit fees to work out. When rates drop it often benefits to pay the charges and you’d still save more money in the long run. Just make sure you work out your finances before taking the plunge.
- Your home’s value has increased
If the value of the property has increased since you took out your mortgage, then you might be in a lower loan-to-value band, meaning you could be eligible for much lower rates.
- You want to overpay but your current lender won’t allow you to
You’ve maybe inherited some money and you’d like to put it towards your property, but your lender won’t let you or it will only let you make a small overpayment. A remortgage will let you reduce the loan size and maybe get a better rate.
Choose a specialist, trusted mortgage adviser
Whatever the reason you’re looking for a review, make sure you speak to a mortgage adviser who understands your specific needs. Your mortgage adviser will be able to truly assess the most current deals for your situation and finances and will ensure that you won’t lose money in the long run.
Need help to secure a low-cost mortgage?
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Dental & Medical Financial Services have been helping doctors and dentists with finding low-cost mortgages for your home and investment properties for over 25 years. Call Chris to discuss your options.
Tel: 01403 780 770