It’s no secret that interest rates are at an all-time low, which is why it might be a great time to bump your existing mortgage up your to-do list.
It’s easy to feel stuck or unsure of what to do with a mortgage you have had for years, but we’re here to break it down with 3 steps to ensure you’re getting the most and paying the least, for your mortgage.
Find out what interest rate you are currently on – and if it’s a fixed rate, when does it end?
This is an important starting point. It’s likely your interest will be either fixed or variable.
A variable-rate may also be called a ‘tracker’ rate, a ‘standard variable’ rate, or even ‘capped’ or ‘collared’. Find out what rate type you are currently on, including the rate, and the date it ends (if it’s variable it probably won’t have an ‘end date’) – and write it down.
If you don’t have the time to call your current mortgage lender, you may be able to find out via an online banking app (if you have access to this with your mortgage lender) or your most recent mortgage statement will have this information on.
Find yourself a trusted, experienced, whole-of-market advisor (or let us find one for you)
Not sure why you should use a broker? See our recent Q&A here.
We know how important it is to have free, no-obligation, trusted help sometimes. And that’s what we pride the advisors we work with on. They have no sales targets, no pressure or pushing behind the scenes, so every conversation they have is purely to help you with your mortgage.
It may be that the best route for you is to go back to your own lender, (in which case they receive no commission or carry out any work at all), or to another lender (with a better rate available) – they will give honest advice on what is best suited to you and your circumstances.
Alternatively, should a better deal be available on the open market with another mortgage lender, they may advise in proceeding to apply for that mortgage instead of remaining with your current lender. This is what you may know to be a remortgage — changing mortgage lender.
In any case, this is why we encourage you to trust their process – as, in this instance, they will take out the hard work and advise on exactly what is going to be best for you – and importantly, how you might be able to save some £££’s.
Sit back and let them do the rest
So, you’ve called your existing lender and have your existing mortgage details to hand.
You’ve used Mortgage Buddy to pair with a whole-of-market Mortgage & Protection Adviser, who has offered a FREE, no-obligation recommendation based on what is most suitable for you.
Now you’ll either be going directly to your lender*, or your new adviser will be managing a remortgage application for you. Either way, the main goal is to save you some £££’s.
*This is referred to as a Rate Switch or Product Transfer, and sometimes a mortgage broker may be able to do this for you – it depends on the mortgage lender and your individual circumstances (they will always explain this to you clearly, openly and without jargon).
If you want to have a friendly, no-obligation chat with an experienced Mortgage Buddy team member, click here.