“Failing to check your Mortgage could see you losing thousands of pounds” says Stephen Kerrigan, Mortgage Advisor.
Earlier, we sat down with the Fee Free Advisor from Doncaster and MortgagesRM Broker about how Homeowners from South Yorkshire can save money on their current deal. After Speaking with Stephen, he mentioned that mortgage rates are currently the best that they’ve ever been for a few years. According to Mortgages Remortgages, Kerrigan said this: “Mortgages should be checked all the time to ensure that homeowners are getting the best deal”.
We don’t want to worry you but, our prediction of the interest rates could drop, and those are the ones that mortgage rates are set on. However, here is some rates to get your teeth into – Please see this as a totem and not recommendations, because they’ve all got specific terms. There are two fixes at 1.05% with Halifax, five-year fixes at 1.44% with TSB, and a two-year tracker with Halifax under 1%. It is the first time that we’ve seen rates like that since 2017.
Our suggestion is to call everybody out there that you need to check your mortgage now to see if you could get a cheaper deal and possibly save thousands. If you have a mortgage, you should check it urgently if you can slice the rate down – you may find that you’ll gain £1,000s right away. Less than a year ago, the very cheapest two-year fixes was under 1%, the similar cheapest deal is now around 1.35%, and a five-year deal can be up to a similar price too.
This is happening because of Doncaster’s long-term view of interest rates is rising. In the short term too, many analysts think the UK base rate will rise soon. If it does go up by an expected 0.25% points, anyone on a variable-rate mortgage will pay almost £200 a year more per £100,000 of outstanding mortgage. Huge savings are possible though. So, here’s your 5 steps to finding the cheapest deal…
Check your current mortgage details. Dig out the details of your existing deal. Bare in mind, you will need to know the…
Interest Rate? And find your monthly payments and outstanding debt.
What type is it? Fixed, Tracker, Discount, SVR
When is the intro deal over? E.g., when does the two-year fix end exactly?
How Long is the Mortgage Term?
Will I be Penalised? Any early repayment/exit penalties?
Work out your current loan to value – the proportion of your property’s current value that you are borrowing such as, £90K on a £100K property is 90% Loan to Value, lower is better, and this has a big impact on the rate you can get.
Benchmark your cheapest deal with a Mortgage comparison. For an easy benchmark of what’s available, start with a comparison site that includes all the deals, including ‘direct only’, those that aren’t offered by a Mortgage Broker.
Is your Credit Score good enough?
Your credit history is a HUGE part of whether you’ll be accepted for a mortgage.
So, be careful before applying and try not to make too many applications for other credit, and never miss a repayment. But, are repayments affordable? For the past couple of years, lenders won’t just check if you are eligible to afford the monthly repayments at the current rate, but they’ll also stress test affordability if rates were 6% or 7%. If you’re close to the financial limits, reel in your spending months before applying, as lenders will want evidence of income, big bills, expenses and even eating out.