Remortgage: Does it pay to switch deals?

remortgage womanHow to save money by remortgaging.

As a home buyer, you could easily cut your monthly mortgage cost by moving from a standard variable rate (SVR). The SVR is the rate your mortgage defaults to after the initial rate. This might have been a discounted rate or a short term fixed rate.  It can also be referred to as the rollover or reversion rate. Currently, SVR rates are around 4.9% according to consumer group “Which” (Jan. 19), with some mortgage lenders charging more.

By comparison, our mortgage “Best Buy” table is showing both fixed and variable rates below 2%, subject to eligibility.

The industry estimates that one in five mortgage borrowers are paying the higher SVR. Generally, there are three types of borrowers on SVR

Those who do not realise they could get a better rate by remortgaging.

Included in this group, are people who remortgaged five years ago when rates were higher. They have now moved to the SVR and may not have noticed the difference in their monthly mortgage repayments. They are unaware of how much they could save.

Those who cannot switch.

This may be because of a change in financial circumstances including.

  • Their employment status may have changed from employed to self-employed.
  • They have taken out large payday loans.
  • Built up expensive debts on credit cards.

If you feel that you fall into this group it is always worth looking at your options annually:

  • The business may now be more established.
  • Your house may have increased in value making your “loan to value” ratio better.
  • Your poor credit history is now a year further behind you.

Those who did not realise that they can remortgage.

So I hope that you are aware now that you possibly can?

How Anstee & Co can help you remortgage.

We are Independent Mortgage Brokers. This means that we look at all the remortgage options available to you. Our advice is unbiased.

Remember, a mortgage is a long-term financial commitment. Making the wrong choice can affect your long-term financial security. Our expert team of mortgage advisers will help you make the right choice and ensure that the remortgaging process runs as smoothly as possible.

We have offices located in-

  • Kettering, Northamptonshireremortgage logo call back
  • Stamford, Lincolnshire
  • Birmingham, Snow Hill Queensway
  • London, Pall Mall

Additionally, our team of mortgage advisers also live and make use of meeting rooms in

  • Droitwich, Worcestershire
  • Bedford, Bedfordshire.
  • Towcester, Wellingborough and Northampton, Northamptonshire.

Finally, the initial fact-finding meeting is free and without obligation. Why not contact us today to arrange a meeting and see if we can save you some money on your mortgage.

AS A MORTGAGE IS SECURED AGAINST YOUR HOME, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.

2019-02-07T13:53:55+00:00 February 7th, 2019|News|