How are mortgage holders affected?
Along with everything else, mortgage holders will also be hit by an increase in costs, as the Bank of England has increased the base interest rate, in an attempt to tackle inflation. This means that repayments will now be more expensive. Could a mortgage review be the answer?What is a mortgage review?
Similarly to applying for a mortgage, in a mortgage review an expert will work with you to examine your credit, your income and your current financial situation. They will also look at your current loan, interest rates, the monthly repayments etc and will suggest any specific changes that they think would be beneficial.Can reviewing your mortgage help?
When you first took out your mortgage, you may have thought it was a good deal. However, with the cost of living on the rise, and bills on a steady increase, reviewing your mortgage, and remortgaging when an appropriate deal is available, could possibly save you thousands. Remortgaging means moving your mortgage to a new lender, whilst staying within the same property or staying with your existing lender but moving onto a different deal/rate. If you have had your mortgage for some time, but haven’t reviewed it, now is the time. Reviewing your mortgage will allow you to see if you are still getting a competitive rate - this is especially important when interest rates are changing, as this will affect how much you will pay. In a time of financial crisis, remortgaging can be a fantastic way to improve your financial situation, and can save you a lot of money during the course of your mortgage deal. However, if you are tied to an agreement, remortgaging isn’t always the best option as you can incur early repayment charges (ECRs) and other fees if they are part of your agreement. If you are unsure about the best option for you, it is important to seek advice before making any decisions as to the best way forward.Here are some tips:
- Use a mortgage calculator - remortgaging to a lower interest rate can save a lot of money. When using the calculator be sure to factor in any fees and charges.
- Shop around - Try to find the best deal on the market by shopping around. Try using a price comparison tool, to help you get the best deal.
- Get advice - Mortgage advisors are here to help you with anything you’re unsure of. Speak to our helpful team of mortgage advisors for more information about reviewing your mortgage.
