Why is it important to check your mortgage?

Honestly, how much time do you spend thinking about your mortgage? A mortgage is one of the biggest commitments of your life and very little time is usually spent making sure it fits your personal situation.

This is what it’s time for a mortgage review.

How important is a mortgage check?

A mortgage review is really important. Reviewing your mortgage from time to time can save you hundreds or thousands of pounds in interest. It’s also a good time to review your mortgage term. Potentially to keep the same payment while reducing the number of years.

Our lives are changing, more and more people want to improve their current home instead of dealing with the stress of moving house. Avoiding high stamp duties and also the emotions of a move.

A standard variable rate (SVR)

If you haven’t had a recent mortgage check, chances are you’re on your lender’s SVR.

When your fixed-rate mortgage deal ends, you roll onto your lender’s SVR rate. However, this will usually be a higher rate; You’re paying too much for flexibility.

Fixed-rate mortgage contracts are usually associated with commitment periods. However, with SVR, there’s a good chance you won’t have to pay exchange fees to get a better deal.

That means you are free to visit a mortgage broker to browse the market and switch.

High stock options

If you’re lucky enough to have plenty of equity, better mortgage deals may be available to you as house prices rise.

Mortgage interest rates are based on loan-to-value ratios, and as a general rule, the more equity you have, the lower your interest rate will be. Capital raising facilities may also be available to you if required.

Debt restructuring is very popular to raise money for a new kitchen, addition, remodeling and/or windows and doors.

Little equity

If you’re a relatively new homeowner or your property hasn’t appreciated in value yet, there may still be ways to save money with your current mortgage lender. If you’ve kept your payments up to date, product transfer offers are usually available.

True cost of a mortgage deal

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

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