With interest rates currently low, many borrowers have found their monthly repayments affordable and have chosen to stick with their existing mortgage deal. However, as the monthly mortgage repayment is often a family’s major outgoing, it makes good financial sense to review your mortgage on a regular basis, as you could save yourself money by remortgaging.
If it’s been a while since you last reviewed your mortgage, this might be a good time to see what’s currently available in the market.
THE BENEFITS OF GETTING A NEW DEAL
There are several reasons why people choose to remortgage, it’s often to:
• reduce their monthly repayments by getting a cheaper rate
• release some of the value built up in their property to spend on home improvements or to pay off debts
• reduce their mortgage term – by finding a cheaper deal and keeping the same level of repayments, they become mortgage-free sooner.
GETTING A GOOD RATE
If your current fixed-rate, tracker or discount deal is about to end or has already ended, it’s usually the case that you’ll be moved to your lender’s Standard Variable Rate (SVR). The SVR is the main mortgage rate charged by the lender – the long-term rate of interest that borrowers are charged once their fixed, introductory discounted or tracker period comes to an end. The SVR can be subject to change by the lender, so, if you don’t do anything, you could be vulnerable to interest rate rises when they come. You could potentially save money by moving your mortgage to a more attractive rate, either with your existing lender or a different one.
TAKE GOOD ADVICE
Your first step should be to get all your mortgage paperwork together, so that you can see what you’re paying now, and also look to see what early repayment charges your current lender might charge you for moving. We can help you by reviewing your current mortgage and helping you decide if remortgaging will benefit you, and if so, which deal might be a cost-effective option for your circumstances.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. Think carefully before securing other debts against your home.
MORE PEOPLE FEEL POSITIVE ABOUT THEIR PERSONAL FINANCES
A poll carried out by Opinium in January found that despite concerns over major issues such as Brexit, more Britons report feeling positive about their personal finances than they did last year. The survey found that workers think that their disposable incomes will increase by 3% on average, from £349 a month to £360 a month.
Spending priorities for this year include holidays (39%), house renovations (16%), and paying down personal debt (14%). However, savings are important too, with respondents expecting to save more at an average of £221 per month, up 13% on last year.
For savers, an ISA is a simple, tax-free way to save or invest. The advantage of these types of account is that you don’t pay tax on the interest or dividends you earn, or the increase in value of your investments. There are several different types of ISA available, designed to help you save for the important things in life like holidays, a deposit for a home, or for your later years. Why not contact us for advice on choosing the one that’s right for you?