A mortgage is one of, if not the single biggest financial commitment of your life. Even though this is the case, we find that many people spend very little time thinking about their mortgage and just continue paying their monthly payments no matter their rate or fees.
If you’ve been on the same mortgage deal for quite some time, a mortgage review is definitely something worth considering. It could even allow you to access a better rate, you’ll never know if you never look!
A mortgage review is exactly what you’d expect it to be; you approach your lender, building society or Mortgage Broker in Hull and let them know that you want to evaluate your mortgage situation to see whether you can access a better deal or not. The mortgage review process will work in the same way as the usual mortgage process.
You will need to provide documents to evidence that you are who you say that you are, as well as your current income and your monthly bank statements. They will also evaluate your credit score and your personal and financial situation. This should give them an indication of whether you can access a better deal or not.
If you can’t access a better deal, no worries! As a Mortgage Broker in Hull, we only charge for our services at the point where you move forward with a mortgage deal. It’s up to you if you continue with us or not.
Sometimes, it can be a pain to go through the whole mortgage process again, however, it could massively benefit you financially down the line. So in the long run, it could be worth it if you end up on a much better rate!
Undergoing a mortgage review from time to time could end up saving you lots of money. If you haven’t moved home or reviewed your mortgage in a while, you could’ve possibly dipped onto your lenders’ standard variable rate (SVR). This is likely to have a much higher rate than your previous mortgage deal.
You’ll find that lenders’ SVR is much higher than their fixed-rate products. In some cases, their SVR is their highest rate. When on a lenders’ SVR, you aren’t tied into any particular deal, you can change deal whenever you’d like once you find another deal.
If you are on a mortgage term based deal, you will have to wait until the term finishes until you can find another deal (unless you are willing to pay a lot of money to switch). Although, if you forget to look for another deal whilst approaching the end of your mortgage term, this is the point where you will switch onto your lenders’ SVR. This is why you need to be aware of when your term is coming to an end.
Remember, you are under no obligation to stay with the same lender or Remortgage in Hull, if you want to shop around elsewhere to find a better deal, you can do so.
Due to the influx in housing prices, if you’re lucky to have lots of equity in your home, you may be able to access more competitive mortgage deals.
Mortgage rates are based on loan to value ratios, as a rule, the more equity you have, the lower your interest rate will be.
You may also have capital raising options available to you if that’s something that you are interested in.
If you are a relatively new homeowner, or your property has yet to increase in value, there may still be money-saving options with your current mortgage lender.
Usually, if you’ve kept up-to-date with your payments, you may also be able to access product transfer deals.
In some cases, the mortgage deal with the lowest interest rate isn’t always the best one, this is because low-interest-rate mortgages often come with high arrangement fees.
A transparent Mortgage Broker in Hull like us will consider all of the mortgage costs for you and work out an estimation of how much a mortgage deal switch over will cost you.
We’ll be able to take into account your personal situation, your credit history, the property being mortgaged, valuation fees and any arrangement fees that are payable and recommend the most suitable one for you!
Get in touch for Remortgage Advice in Hull today.