5 unbelievable mortgage secrets your lender might not tell you


You might think you have found a trusted bank or mortgage lender that is looking out for your best interests but there still may be things that they don’t want you to know. Here’s the insider information to help you get the best mortgage deal and make the most of your money.

You might not be on your lender’s best rate

If you’re a loyal customer your bank doesn’t really need to work that hard in order to keep your custom – they’ll be putting all their efforts into attracting new customers. One of the ways they might do this is by slashing rates and offering better deals than are advertised on their websites.

Don’t be fooled into thinking because you’ve stuck with the same provider for years, you’ll be getting the best rate – but if you don’t ask, you don’t get so make sure you check with your lender to see if they can offer you any better deals.

You could get a cheaper mortgage deal elsewhere

If you’re only checking out mortgage deals from your current provider you could be missing out. Your bank doesn’t want to promote their competition or risk losing your custom so they’re not going to tell you that you could get a much lower rate by switching to a different lender. Make sure you do your research before you buy to make sure you’re not paying over the odds for your mortgage.

Top tip: Don’t want to do all the legwork yourself? Get yourself a mortgage broker who can search the whole of the market for you.

The lowest mortgage rate may not be the best rate

Your lender thinks you want the lowest rate so they’ll focus on this but just because a mortgage has the lowest interest rate doesn’t necessarily mean it’s the best deal overall. Don’t be charmed by a low rate without working out the overall cost of the mortgage – don’t forget to think about arrangement fees and read the terms and conditions to make sure that the product is exactly right for you.

The small print is important

We’ve all done it, we’ve all signed the paperwork without fully reading the small print but don’t do it with your mortgage. Your lender is obliged to ask you to read it before you sign, but they won’t take you through it word for word so it’s up to you to make sure you’ve covered all the terms and conditions. Failing to pay your mortgage can put you at risk of losing your home, and exiting your mortgage early could result in severe financial penalties. You need to know this before making a huge financial commitment.

You can pay your mortgage off early

A long mortgage term may seem like a huge millstone around your neck but paying it off early is possible. By making overpayments each month, you could cut years off your mortgage term and save thousands in interest payments. It’s worth checking with your lender before hand if you’re allowed to make over payments and if there are any limits to the amount you can overpay by too.

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The above post is intended to be informative but does not constitute advice – financial, legal or otherwise. Any opinions given are the author’s own and do not necessarily reflect the views of SO Media.