It might be time to take a look at some better deals
For most people buying a house and getting a mortgage are long- term commitments, but this doesn’t mean that you have to stay with the same home loan you started out with.
Mortgage repayments are likely to be your biggest single outgoing, so if you’re able to find a new deal and save just a small amount on repayments each month, the savings can really add up over time.
We’ve put together three examples of when you should be reviewing your mortgage needs:
You’re coming to the end of a fixed rate or introductory offer
No doubt, when you first took out your mortgage you looked around for the best deal. The same should apply if you’re on a fixed rate deal or an introductory offer and approaching the end of your term. However, this isn’t always the case.
According to the Financial Conduct Authority, an estimated 800,000 borrowers in the UK waste £1,000 a year by leaving it more than six months to a find a new deal. Lenders will prompt you in advance but if you don’t act, you’re likely to roll on to a more expensive Standard Variable Rate (SVR) loan.
You’re moving home
There are many reasons for moving; maybe your family is expanding and you need more space, or the opposite: you want to downsize and enjoy managing a smaller home. Whatever the reason, one of the first things to check is whether your current mortgage is portable. If it is, you can transfer it across to your new property. If it isn’t, then the process is just like taking out a new mortgage, except on a different house.
You’ve had change in circumstances
A new baby, a marriage, or a separation are just some of the life events that can impact on finances and should prompt a mortgage review. If the objective is to reduce your monthly repayments, you may be able to extend the length of your current mortgage term, or find a new mortgage that offers lower repayments.