MortgagesRM – Sheffield Fee Free Mortgage Advisor, we are giving you the basic tips on how to launch your own post-COVID recovery by cutting the cost of your mortgage.
job cuts are pushing 650,000, leaving thousands of homeowners worried about paying the bills and mortgage
Move off your standard variable rate
One of the biggest mortgage mistakes you can make is slipping onto your lender’s standard variable rate. However, the interest rate you default with when your fixed-rate deal comes to an end is not moving back onto a cheaper deal.
This can end up costing hundreds of extra pounds a year, and there are usually no downsides to switching to a cheaper deal. The caveat here is that if you switch lender, they’ll value your home which could affect the deals you are eligible for.
Ask for a Better Deal from your Lender
Households are routinely warned about the so-called ‘loyalty penalty’ that sees them offered a worse deal than new customers on everything from house insurance and energy to broadband.
Some customers, however, still move onto the standard variable rates if they do not switch to a new deal, banks and building societies are becoming for more proactive in tempting customers to stay with them.
A payment holiday can be offered to anyone who asks for one, and borrowers who are behind on commitments should be treated the same as those who are up to date,
Stephen Kerrigan, Sheffield Mortgage Advisor.
This means you won’t need to be in the majority of cases that won’t need to show proof of financial hardship to qualify. However, you may need to provide a brief description of your circumstances, the loan details and confirm that you are struggling to keep up with repayments.