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 in your life, and you usually spend very little time making sure it suits your personal situation.

This is the time for a mortgage review.

How important is a mortgage review?

A mortgage review is really important. Checking your mortgage every now and then can save you hundreds or thousands of pounds of interest. It is 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 instead of going through the stress of moving. Avoid the hefty stamp duty rates and also the thrills of going through a move.

A standard variable rate (SVR)

If you haven’t had a recent mortgage review, chances are you’re at your SVR lenders.

When your fixed rate mortgage contract ends, you will switch to your lenders’ SVR rate. However, this is usually a higher rate; you’re overpaying for flexibility.

Fixed rate mortgage offers generally come with linked periods. However, at SVR you most likely don’t have to pay any exchange fees to get a better deal.

That is, you can consult a mortgage broker to search the market and change.

High equity options

With rising house prices, 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 the loan-to-value ratio; As a general rule, the more capital you have, the lower the interest rate. You may also have capital raising options available to you if you require it.

Remortgage is very popular to raise money for a new kitchen, extension, conversion, and / or windows and doors.

Little equity

If you are a relatively new homeowner, or your property hasn’t increased in value yet, there may still be options to save money with your current mortgage lender. Usually if you’ve kept your payments up to date, etc., there will be product transfer offers available.

The real cost of a mortgage deal

The mortgage deal with the lowest interest rate is not always the best.

A good mortgage broker will work out and compare the cost of a remortgage and compare it to doing a product transfer with your current lender.