Top Tips To Get The Best Deal On Your Mortgage
When it comes to getting the best mortgage deals in the UK locked in on your mortgage, time is very much of the essence.
If the Bank of England’s Base Rate increases, this will, in turn, increase mortgage rates and other repayment rates quite quickly, which means that some of the exceptionally low mortgage rates that have been seen may perhaps be changing quite soon.
It is worth checking your current mortgage rate and seeing if it is possible to improve it, especially if that mortgage is based on a lender’s current variable rate, as this is the rate most likely to change suddenly.
Here are some top tips on ensuring you get the best deal on your mortgage.
Know What You Have
To know whether there is a better mortgage out there for you, it’s important to know what you have, and that includes the following basic details:
- The mortgage rate, both in terms of percentages and in terms of monthly payments and any outstanding debt.
- How long you have to repay, typically 25 years but could be more or less depending on circumstances.
- When your introductory fixed rate ends, and if there is a penalty for switching deals.
- The type of mortgage, either fixed-rate, tracker (usually tracking the BoE’s base rate) or the standard variable rate.
- The loan-to-value of your mortgage, which is the percentage of the home’s current value that you are borrowing.
Knowing all of this information ahead of time will let you know if it is worth seeking out a better rate.
Compare Your Current Lender’s Best Option With The Market
An option you see a lot more with phone contracts and other monthly costs that is becoming increasingly popular with lenders is seeing what options are available with the incumbent lender.
The reason for this is that you can save money on fees, paperwork and affordability checks, as a current lender does not need to necessarily do the same checks so long as you are not borrowing extra.
Product transfers such as these are not the only option though, and once you find the best deal look at different mortgage brokers and comparison tools to see if you can save by going to another lender, factoring in potentially higher fees against a lower rate or lower LTV.
Check And Boost Your Credit Rating
As with first-time mortgages, your ability to afford a mortgage and your credit score will play a large part in determining which deals you are likely to get access to.
If you have the option to pay down debts then it can very much be worth the effort being frugal in the few months leading up to a remortgage application
Another option, if you have the savings to do it, is to use the savings you have to get to a better LTV band, with notable savings at 90 per cent, 80 per cent, 75 per cent and finally stabilising at 60 per cent. This can save a considerable amount on a mortgage in the long term.
A lot of lenders can enable you to lock in a rate a few months early if you are still waiting for your current deal to end, albeit for a non-refundable fee, which can cover you in case rates rise whilst you look for better deals.
For more information from mortgage advisors in Twickenham, get in touch today.