- Salli Anstey
Your mortgage is usually your biggest expense each month, so it’s not one to manage ineffectively. Making sure you’re on the best deal, however, with the hottest rates, can be a daunting job, so it’s no wonder almost one million borrowers are paying their lender’s standard variable rate (SVR). This is the default interest rate you roll onto after an initial fixed or tracker deal expires.
With some SVR rates higher than 4% there can be some significant financial savings to switching, especially with interest rates at historic lows.
At Private Wealth Mortgages, we offer a FREE MORTGAGE MOT, which is a review service where we perform a thorough check-up of your current mortgage to make sure you’re on the best deal. This could be critical for anyone who is paying their lender’s standard variable rates that will invariably be higher than on a fixed or tracker deal. It can also help anyone who thinks they may be in a position to save money on their mortgage by swapping to another lender or product.
There could be other reasons you may want to remortgage and as part of our MOT review service, our expert mortgage advisers look at a range of criteria related to your individual circumstances to determine how you would benefit from changing your mortgage. There is no fee related to this service and no obligation to switch either. You may want to raise some capital for home improvements using the equity in your property, your current mortgage fixed term rate has come to an end, or your circumstances have changed, and you need to alter your payment terms.
In the meantime, here’s a guide to getting started and some tips to consider:
Gather info about current mortgage
We can do this for you as part of our free MOT service. We can gather the information on your current mortgage and find out if you’re paying your lender’s SVR rate? If so, you will most likely be free to move without incurring any fees and, although there maybe arrangement costs associated with the next mortgage, significant savings on the rate will make up for this.
Are you still in a deal?
If so, we will find out what the interest rate you are paying is and what penalties there are to switch. In some cases, even with the early redemption penalty charges, switching to an alternative interest-rate deal can, when totalled up, save you money.
As we’re currently riding on the wave of a low interest rate cycle, switching to a fixed rate deal to make the most of this current climate is definitely worth considering. If interest rates fall further, however, you may not be able to take advantage of a better deal.
It’s important to have a financial buffer, but once in place, having an overpayment facility on your mortgage deal is a tax-efficient way of maximising your additional disposable income and making further savings.
Whatever your reasons for remortgaging your property, our expert advisers will assess your entire financial situation and current mortgage. This includes the amount you are currently paying, how long it will take to pay down the loan and any short term and longer plans you have. Specialising in providing mortgage guidance for your personal circumstances, we’ll provide a range of recommended mortgage options, that may not only save you money, but may suit your needs better.