Finding the best deal for your mortgage

Image of Mark ChapmanConsidering a mortgage or ready to find a better deal on your existing mortgage?

This could be the best time ever to take out a new mortgage or remortgage, with interest rates at an all time low and with the distinct possibility that this will be  he last year before rates rise. This means that many people could secure their mortgage rate for many years to come. Whilst this is not appropriate for every single person, every mortgage holder should assess what their best option is.

Before making any decisions you should ensure you know:

  • Your current mortgage rate, monthly repayment amount and the outstanding balance
  • If there is a penalty for early repayments
  • If you have a fixed, discount,  tracker or standard variable rate mortgage
  • If you have a fixed, discount or tracker mortgage, when the discount rate ends
  • How long your repayment term is and when this will mean your mortgage will be fully repaid.

Those on standard variable rate mortgages could make significant savings as many SVR mortgage customers are paying many times the rate on new mortgage  deals. Rates are so low that even those with fixed or discount mortgages may be able to make a saving.

So what’s the difference? With a fixed rate mortgage the  amount you repay is fixed so you always know what your payment is and you’re protected against future rate rises for the term of your mortgage. With a  variable deal, the rate can rise with interest rates or just at the say so of the provider. You will pay more for a fixed deal but currently the difference is minimal.  It’s very difficult to predict future interest rates but you can consider your own situation. If knowing what your outgoing payment is every month, a fixed rate  would probably be better for you and you should look to fix for as long as possible. If you care more about getting the best deal, shorter term tracker deals may  be a better choice.

Lenders' Standard Variable Rates

LenderRateLenderRate
Source Moneyfacts August 2017.
Please note these rates are typically the deal which will apply after any initial rate has
finished. However, they should be checked on a case by case basis.
Barclays4.74%Metro3.75%
Coventry4.49%Nationwide3.74%
Halifax3.74%Nat West3.75%
HSBC3.69%Santander4.49%
Leeds5.44%Skipton4.70%
Lloyds3.74%Virgin4.54%

Now you know your rate, see what’s out there. The easy route is to contact a fully Independent Mortgage Broker, who will be able to assess you current  mortgage and the alternatives available.

You can compare your current deal to a potential new one using the series of calculators here.  These will help you with comparing mortgages and estimating if you should ditch your current deal, taking fees into account.

Independent Mortgage brokers  can help get applications approved. They have info that’s unavailable to consumers, such as lenders’ credit and affordability criteria and they carry more clout  with lenders to ease acceptance. Your adviser can match you to the right deal for you and offer an extra layer of protection if things go wrong.

If you’re ready to  discuss your options for  a remortgage, or want advice on securing your first mortgage, get in touch with Alex Eddy cert Cii(MP) Cathedral Independent Financial Planner’s Independent Mortgage and Protection Adviser. Call 01234 752502 or send Alex an email  to get started on securing  yourself a better deal.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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