With interest rates falling below 1 per cent, homeowners are being urged to check they are on the best possible deal, which could see tens of thousands of people see their monthly costs fall as a result

This Is Money reports that mortgage rates have reached record lows, with some five-year deals now as cheap as 1.19 per cent for those with 40 per cent deposits, dropping from 1.32 per cent a year ago.

Checking your mortgage deal, and then going on to find better mortgage deals, could be extremely advantageous to homeowners at a variable rate, meaning they can be paying excruciatingly high rates for their loan each month.

Anyone who is approaching the end of their fixed-term should also start comparing rates six months ahead due to delays due to the pandemic and the pressure on banks and brokers at the moment

Money-saving expert Marin Lewis said: “Rates have dropped below 1 per cent – check urgently if you can switch & save £1,000s. Acceptance isn’t always easy, but don’t just accept the status quo.”

He explained that a combination of ‘ultra-low UK interest rates’, as well as the stamp duty holiday, and people saving more during the lockdown, means that there is a lot of competition between mortgage providers that customers can take advantage of, including both buyers and anyone planning on remortgaging.

It’s important to act quickly to avoid any standard variable rates, typically the default rates to be paid once your initial term comes to an end

To get started, check out any deals that your current lender is offering, and use a mortgage comparison tool to see if you can find a cheaper rate elsewhere.

The first questions to ask yourself when you find a deal are:

  • What is the interest rate and what does that amount to in monthly payments?
  • What type of mortgage deal is it? Most people will opt for fixed or tracker deals.
  • How long does the introduction period last and what are the upfront fees of the deal?
  • Will you be penalised to switch? Are there early repayment/exit penalties during your fix or tracker deal?
  • What’s the loan to value (LTV) – how much of your home’s value do you need to borrow

Most rates fluctuate because of the loan to value (LTV) on the mortgage. Mortgages start at 95 per cent LTV but are usually far cheaper at 90 per cent or less than the home’s value

You should also factor in any savings if you’ve been fortunate enough to be able to put some money away during the pandemic, and put it towards your mortgage to potentially save tens of thousands of pounds in the long run by reducing your loan to value ratio.

For example, if you had a £150,000 mortgage, and used an extra £1,000 of savings to get you to 75 per cent LTV, the top two year fixed deal drops to 1.18 per cent. That means you would pay £580 a month, as opposed to 1.79 per cent, which was £625 a month.

If you’re looking for mortgage brokers in Twickenham, talk to us today.

For more information about any of our services, or for help to find mortgage deals, get in touch by calling us on 0203 3939 222.

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Hannah D
Hannah D
07:42 09 Sep 19
I would fully recommend Greg and Greenacre Financial Services. As a first time buyer I was daunted by the process of... finding the right mortgage for me however Greg made the process really simple, clear and quick. He was always available to answer any questions and happy to explain everything. I wouldn’t hesitate in recommending Greenacre FS to my friends and family.read more
Jessica Cohen
Jessica Cohen
19:33 26 Aug 19
We first met with Greg in May for advice as we had adverse credit and irregular pay and didn't think a mortgage was in... our reach. Less than two weeks later Greg had fully arranged a great deal for us on our first mortgage. He was available whenever we needed him, 7 days a week and in the evenings. We cannot thank Greg enough for helping us buy our first home!read more
Seren Fletcher
Seren Fletcher
08:56 24 Aug 19
Would highly recommend Greg and Greenacre Financial Services. Was extremely professional and helpful. Our mortgage... wasn’t straight forward due to my husband being self employed but Greg was very knowledgable and managed to find us a really good mortgage. Looking forward to working with him again in the futureread more
13:24 23 Aug 19
Graham at Greenacre was excellent in helping me get a mortgage for my house purchase. He was always available when... needed, provided an efficient service and was very knowledgeable. Highly recommended!read more
Ian Hatter
Ian Hatter
11:07 16 Aug 19
What can I say, Greg has been absolutely amazing in sorting out a mortgage for me I never thought was possible. It has... meant I have been able to buy a house, a few months ago, I would never have dreamed of being able to buy after talking to high street lenders. He worked exceptionally hard and always kept me updated with every step of the process. Buying a house is extremely stressful, but Greg took all that stress away from me. I cannot recommend Greg enough to anyone looking to buy a property. Thank you so much for your help Greg, it's greatly appreciated.read more
Sean Kelly
Sean Kelly
15:27 30 Jul 19
10/10 EXCEPTIONAL service and result. Highly recommend. Greg and the Greenacre Financial Services team were fast,... knowledgeable, and honest. All the qualities you want and need. Very pleased I was recommended to Greenacre. Customer for life!read more
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