If your current mortgage rate ends shortly or you’re on your lender’s standard variable rate, then now may be a good time to review things. Here’s 6 reasons to think again about your current mortgage:
1) Lender’s mortgage rates are at an all-time low.
Many of our clients were surprised that by taking out a new mortgage now, they actually saved money. If you’ve not reviewed things in the last 12 months, now is a great time to do so.
2) Shield yourself from interest rate rises.
Some fixed rates are below many lenders standard variable rates, meaning you could fix your new lower monthly payments for 2 to 5 years, or perhaps even longer.
3) With house prices continuing to rise
Your loan as a percentage of the value of your house may have reduced. Lenders often offer better mortgage rates for lower loan-to-value mortgages. When was the last time you reviewed this to see what new rate you could get
4) If you have an interest-only mortgage
…and are concerned about how you will repay it, now may be a good time to consider whether moving to a repayment mortgage may be more appropriate. The sooner you address this, the more time you’ll have to repay the balance, keeping your monthly repayments down.
5) If you have savings held in a deposit account…
…earning little to no interest, have you considered an offset mortgage? This is a type of mortgage in which you can blend a traditional mortgage with one or more deposit accounts. The cash balance can be used to offset an equivalent amount of your mortgage debt, helping you to accelerate the repayment of your mortgage or to reduce your monthly mortgage repayments. This may be a great way to make your cash work a little harder whilst retaining access to it.
6) Remortgaging may also provide…
…an opportunity to raise capital for home improvements, or debt consolidation.
Interested in knowing more?
If you would like some more information on anything mentioned above or would like some advice, feel free to get in touch with Marc Denton or Geoffrey Mabbutt (Wow’s Independent Financial Planners) on 0345 201 1580 or send us an email to firstname.lastname@example.org.