Is it time to review your current mortgage?
Your current mortgage deal might have been competitive when you first got it, but regularly reviewing and remortgaging when a better deal is available could save you money. As specialist mortgage advisors, Greenacre Financial Services are here to help you with your mortgage review.
Because your mortgage is a large part of your finances, as your life changes, a mortgage review helps you determine if your mortgage lender/mortgage deal should change. A review will help you ensure your mortgage is meeting your changing financial needs. While an annual review is advised, you should definitely schedule one as soon as possible if:
- Your current mortgage deal is coming to an end in next 6 months
- Your household income has changed
- Your marital status has changed
- Your interest rate is due to change or has changed
- You are planning a large expense
- You have not reviewed for at least three years
A mortgage review is like applying for a mortgage in the sense that a specialist mortgage advisor will work with you to examine your income, your loan to value (LTV) and your current financial situation including any credit. Additionally, they will look at your current mortgage – the monthly mortgage payment, interest rates, insurance etc. Based on these factors, they will suggest any specific changes that would be beneficial.
Reasons to remortgage
There are several reasons to remortgage including interest rate change. When you take out a new mortgage, you normally get a low fixed rate or discounted rate or a low tracker rate deal for the first 2-5 years of your mortgage. When your introductory period ends, make sure you take a look at the market to see if switching to a new mortgage deal will save you money.
Another reason is that remortgaging might help with getting a more flexible deal – for example if you want to overpay. Debt consolidation is a further reason, but even though interest rates on mortgages are generally lower than those on personal loans – and definitely much lower than credit cards – you might end up paying more overall if the loan is over a longer term. Read our Reasons to remortgage in the UK for more information.
If you do nothing when rates change or your mortgage deal ends, you risk losing out on the better deals that are available.
Look out for remortgage costs
Although you can reduce your monthly payments by switching, keep in mind that there can be a number of costs involved when remortgaging. Look out for:
- High early repayment charges to pay if you are leaving your deal early
- Valuation and legal fees might be charged by the new lender, although these can often be waived if your remortgage is successfully completed
- Exit fees may be payable when you leave your current lender so factor this into your costs
- Booking or arrangement fee that may be payable on the new deal
Set a reminder to looking around at least 6 months before your discounted deal or current fixed rate reverts to the lender’s standard variable rate.
Getting the right advice
We are here to help you weigh up the total cost of a possible remortgage against the savings you will make. If you’re going to do things, you may as well do it properly, and we have a strong reputation for helping people to save much more money from a deal long-term.
You should expect to pay around £200 and £500 for the services of a mortgage adviser. However, the assistance and advice that they provide you when it comes to navigating the market, finding the best deals, and getting accepted for a remortgage as well worth the one-time payment.
At Greenacre we are here to work with you in advance to make sure your mortgage continues to match your needs, comparing your existing deal with the rest of the mortgage market to find the most suitable product. We will do it all within good time, so you do not ever pay more on your mortgage than you have to.
For more information about any of our remortgaging services, including mortgage reviews, please do not hesitate to get in touch by calling us on 0203 3939 222.