The world of mortgages can be a confusing place for anyone, but it needn’t be a complicated or time-consuming process when coming to changing your mortgage provider.
But the question is – when should you consider switching your mortgage provider?
We have come up with three reasons to help you understand WHEN you should start considering your mortgage lender and WHY:
- If your current mortgage deal is about to finish
Usually, the initial rate that you pay for your mortgage is only set for a certain allocation of time, and once that time has expired – it reverts to the mortgage providers standard variable rate. This, of course, will be dependant on the type of deal that you receive (for example a two-year fixed mortgage rate will either last for two years from the date you take out the mortgage, or on a date of two years or more set by the lender). Once this initial rate has expired – it may be time for you to look elsewhere for a better mortgage deal to suit you.
- You can make overpayments
Sometimes you come into luck concerning money. You may receive a pay rise in work or even receive a large sum of money which improves your overall financial situation (where you will then have more money to pay off your mortgage each month!). So, if your current mortgage does not accept any overpayments – then you may need to start looking elsewhere.
- The mortgage rates have reduced over a period of time
Mortgage rates can be known to drop incrementally over some time – meaning that your current mortgage rate may be less competitive than it once was. This decrease can still outweigh the impact of any early redemption feeds and the costs of obtaining a new mortgage deal (if the reduction in the overall rate is large enough). If this is the case for you, then we recommend you contact one of our advisers to discuss further.
Compared to other household payments your mortgage is going to be significantly more, so you must find the right mortgage deal for you – that doesn’t cost you an arm and a leg. Please contact one of our advisers if you are confused or worried about anything, or you feel like you aren’t paying the right amount for you.
Speak to a qualified mortgage adviser today who can explain all your options to you and search the market for a low rate deal.