... the biggest financial commitment most of us will ever make is taking out a mortgage on our home. This for many of us, will be a commitment throughout most of our working lives with mortgages usually taken out for 25 to 30 years with 35-year terms not unheard of.
If you are already ‘gifted’ with a mortgage, we can show you various ways of repaying your mortgage quicker, potentially saving years of payments and 100’s possibly 1,000’s of pounds of interest.
Review your mortgage at the end of its current rate deal
When you are coming towards the end of a fixed or discounted rate deal you will invariably have been tied in until the end of the ‘benefit period’, it is worthwhile to start to consider your options probably four months before the deal actually finishes. You will need to find answers to several questions to allow you to get the very best from your chosen lender over the next ‘benefit period’ be it shorter or longer term. You need to consider the following to ensure that you get what is right for you:
Will my existing lender offer me a new deal? If so on what terms?
Are there any better deals available on the open market and if so what are the costs?
Will it be possible to reduce my mortgage term? Can I afford to?
What is the likely value of my property now and what is the current loan to value?
Hopefully over the years of ownership, your property will have gained in value and of course by making your regular monthly repayments you will have effectively created equity in your home and by doing so, will have lowered your loan to value which should offer you potentially more attractive mortgage rates.
Many lenders will offer very attractive deals to persons moving their mortgage to them as a new customer with combinations of free valuations, free conveyancing, cashbacks all being offered together with very competitive rates. This process is known as re-mortgaging and can become something of a minefield for the unwary! Don’t be fooled into thinking that if an ‘on line’ calculator says you qualify for a given deal that you automatically will be…over the years there have been many people who thought they could get a great deal but when they spoke to the lender they found they did not fit the headline rate criteria. This is where John Carter at Abode Mortgages Limited may be able to help you! His 25 years industry experience in the Colchester, Clacton and Brightlingsea areas combined with access to the whole mortgage market, places him in a very strong position to give authoritative advice.
Of course, when re-mortgaging to a potentially better rate and making savings each month, it may make sense to leave your repayments at the same level they were at prior to striking up your new deal. The effect of overpaying your mortgage even by as little as £25 a month will have a marked effect on both the term of your mortgage and the total amount of interest that you will have to pay. You need to remember that most lenders will restrict you to a maximum of 10% overpayments per annum and any payments in excess of this amount may attract an early redemption penalty. Again, this is an area where Abode Mortgages Limited may be able to assist you and a meeting with John Carter may be the start of getting you on track to a sound financial future.
Your home may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you re-mortgage.