Its seems that every time I turn on the TV, there is someone telling me to check I have the best deal on my car insurance / energy tariff / bank account etc etc. Finding a better deal can always save you a bob or two, but the best financial switch anyone can make is the switch from a higher to a lower-rate mortgage.
The process involves quite a bit of form filling, (if you use an Independent Mortgage Broker they will do this for you), and you will have to answer all sorts of questions about your income and outgoings, but in terms of time spent vs money saved, it’s about as good as it gets!
Never has there been a better time to act. Mortgage Lenders appear to have entered a rate war, launching amazing new deals offering record-low rates and cut-price fees. Competition is so fierce that the cost of a typical £200,000 home loan over a five-year period has fallen by £1,700 in the past month or so.
Despite the tempting rates on offer, according to research about 40% of mortgage holders are sitting on their lenders “standard variable rate (SVR). This is the rate set by their own lender, which is the rate everyone pays once their fixed or tracker rate finishes. At an average of 4.48%, (some lenders are charging more than 6%), these rates are generally far higher than the best deals on offer.
Compare your SVR to a two-year fixed rate which you can now pick up for as little as 1.2% or even a 10-year fixed which you are on offer for less than 3%.
Here’s the maths: If a borrower had a £200,000, 10-year mortgage on an SVR of 4.48% and remortgaged to a ten year fixed rate at 3%, they would save £247 a month in interest, or £2,960 a year for 10 years, assuming the variable rate remains the same. That’s a staggering £29,600 over 10 years!!
I can’t think of a reason why now wouldn’t be the time to act, it’s time to speak to your lender or an Independent Mortgage Broker!
2 days ago
There was a 32% increase last year in 100% loan-to-value (LTV) mortgages which are mortgages that require zero deposit. According to a recent report by chartered accountants and business advisers, Lubbock Fine, the reason behind this is buyers simply struggling to save enough for a deposit.
3 days ago
Many people are quite private when it comes to what is in their bank account. In this short blog, we look into what Brits have saved by age group.
Research from buy-to-let lender, Landbay, shows that UK landlords are looking at raising rents ahead of the Renters' Rights Bill which is due to come into force this year.
Data shows landlords could miss out on green mortgages due to expired energy performance certificates.
Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.
20 May 2025
Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.
19 May 2025
It’s important to ask questions about the property you are interested in before taking that step to make an offer. A little probing can make all the difference between buying your dream house or something that requires a lot of work.
16 May 2025
There are millions of homeowners over the age of 60 who are likely to release money from their homes to pay for their lifestyle during retirement giving those who are 'asset rich but cash poor' a way to live out their retirement the way they wish.