Are you thinking whether now is the right time to switch your mortgage? There are many reasons why now could be a good time to consider switching your mortgage deal.
Save money
When your car insurance is due for renewel, you probably compare it with other policies and hope you might be able to save some extra money, so why not do it with your mortgage, as there could be the potential to save money by making a simple switch to a better deal.
Whether you’ve come to the end of your current mortgage deal or you’ve had a change in circumstances, its good practice to review your mortgage regularly.
Want a fixed rate mortgage
If you’re currently on a variable rate mortgage, your payments could increase if the Bank of England base rate was to go up. The alternative is to switch to a fixed rate mortgage deal which means that the changes in interest rates won’t affect how much you pay on a monthly basis; you’ll always pay the same amount.
Being on a fixed rate mortgage can give you peace of mind knowing exactly what your monthly mortgage payments will be and can also help you manage your finances. The length of your fixed rate mortgage is based on product you go for. The most popular are two year or five year fixed rate mortgages, but this can vary.
A deal that’s right for you
You might be able to find a more competitive mortgage deal. Over time as you pay off your mortgage the loan-to-value (LTV) can decrease and can reduce further if your property increases in value. Often the lower rates are with the deals that require a lower loan-to-value. There is a possibility that there are lower rates available to you now, compared to when you took out your first mortgage.
It could be a chance for you to reduce the length of time left on your mortgage, or maybe you want to adjust the amount you’re paying each month. Your circumstances can change over time so it’s important to make sure your mortgage suits your needs.
Isn’t it a lot of hassle to switch?
Just like when you took out your first mortgage, there is paperwork involved and searching for a new mortgage can feel daunting. This is when seeking help from an expert mortgage adviser can make things easier for you.
How can a mortgage adviser help?
If time is an issue or you’re simply confused about where to start, a mortgage adviser can make the whole process easier for you. They will take into consideration your circumstances and why you want to switch your mortgage, giving you tailored advice.
An adviser can search thousands of deals to find one that is suitable for you, and they will be there to support you throughout the whole process.
If switching your mortgage is right for you, speak to your local mortgage adviser and they’ll be here to help you get started.
You may have to pay an early repayment charge to your existing lender if your remortgage.
Find out more about our Mortgage Advice service in Grimsby