An Interest in Mortgages
If you have a mortgage on your home it is probably the biggest monthly outgoing that you have. A mortgage is an agreement where you have borrowed money from a bank or building society and they have the right to take your property back if you don’t keep up with those big repayments.
Those mortgages repayments have got bigger and bigger with five successive increases in the base rate between August last year and September this. The installments on a £100,000 mortgage are now £75 higher than they were last year.
The key question for all homeowners under these circumstances is; are you getting the best mortgage deal available and are you getting the service you deserve from your mortgage provider.
If you are being charged mortgage interest at the SVR, standard variable rate, then you could save significantly. Be sure to get a good new deal at he time of your current deal running out by avoiding SVR. The best deals will be found at an independent mortgage adviser.
Independent mortgage advisers can give you impartial and understanding advice in confidence. They will match your circumstance to the best value mortgage. It is better to talk to independents than direct to lenders because they can take the surprise out of any information requirements of the big lenders and help you prepare all the necessary paperwork. Preparation can save a great deal of time and get you on the lower payments earlier.
Full disclosure is much easier to parties without a vested interest in the outcome. They will not be critical of any county court judgements or mortgage arrears in the past. The embarrassment of such a credit history can hold people back from refinancing and thereby cause them over pay for their home loan.
The UK mortgage market is very competitive with lenders vying with one another through discounts and low interest rates to attract good customers. Many legal and valuation costs are being waived in order to make the changeover easy and cheap.
A great piece of advise is to compare ALL of the fees and charges associated with a new mortgage deal before selecting the best value. Independent mortgage advisers have the resources to do this quickly and completely. Do not take out the home insurance that will be pushed your way by you mortgage provider. You will almost certainly find a better deal elsewhere.
Lenders are focused on your ability to repay their loan and will thereby make you an offer based on multiples of your annual income, say three times plus any second income. It’s a crude but tried and tested formula. However it is not wise to take the maximum mortgage that is offered unless you are very sure of being able to afford it over the term of the loan.
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