Many homeowners suspect they may be spending more than necessary each month on their mortgage repayments and would like to consider making new arrangements. It is certainly worth exploring the options, although renewing your mortgage is not always the best financial solution.
If you have decided to investigate the alternative interest rates or other mortgage types and terms that may be available to you, it makes sense to speak to a professional mortgage adviser about a mortgage review.
It is now even more important that you use a mortgage expert who is familiar with the deals now available in the market place.
The impact of the credit crunch
The credit crunch has shrunk the mortgage market. So it is now even more important that you use a mortgage expert who is familiar with the deals now available in the market place. For example, it doesn’t always follow that switching to a lower interest rate will save you money. A good mortgage adviser will take into account any fees or charges that may arise from switching lenders, and clearly present the total costs so you can see the full financial impact of a decision.
Some lenders may be reluctant to adjust their own lending rates to match reductions in the base rate, while others may increase their rates regardless of base rate changes. This makes it all the more important to speak with a mortgage adviser who has access to products from the whole market and who can compare the latest rates offered by different lenders. After your review, mortgage advisers using online sourcing tools will be able search the whole market to find the mortgage best suited to your individual circumstances.
How a professional mortgage adviser can help
A professional mortgage adviser will always aim to help you meet your personal financial objectives. This could be to save money with your existing lender or by switching lenders. Or, for those whose income can comfortably cover it, to increase borrowing to pay for home improvements or other major expenditure. This is often attractive but it’s worth noting that while this type of borrowing usually costs less each month (than other sources of finance such as an unsecured loan) payments over a longer period may add up to more in the long run.
Types of mortgage
There are a variety of fixed-rate, variable-rate and other types of mortgages available, with some lenders specialising in particular segments of the property market. Many high street lenders can only provide advice on their own mortgage products, giving them a vastly reduced product range when compared to a professional mortgage adviser – who may find mortgage terms that would not be available from high street lenders.
It makes sense for you to review your major financial commitments on a regular basis. A good mortgage adviser will offer a free initial consultation that provides you with clear feedback on the options available to you. You really have nothing to lose by asking for a mortgage review and it’s just possible the benefits could be substantial.
Think carefully before securing other debts against your mortgage. Your home may be repossessed if you do not keep up repayments on your mortgage.