As mortgage products become ever more complex and competitive, the market of lenders grows. This is good for borrowers as it increases competition for their business.
One of the biggest barriers to borrowers changing their mortgage provider is the growing trend amongst lenders of introducing What is an Early Repayment Charge?. These can result in fairly substantial penalties being payable if a borrower chooses to move to another provider or pay off their mortgage early.
That said, you should not be put off from shopping around, especially as sometimes, the savings to be had from moving a long term loan can far outweigh the relatively small costs incurred paying a redemption penalty or administration fees.
At the very least, it’s prudent to review your options whenever interest rates change or any fixed term periods or redemption periods expire. Shaving just a fraction off the interest rate you’re paying on a large loan can quickly end up saving you hundreds or thousands of pounds over the lifetime of the loan.
Of course, there are other reasons to reconsider your mortgage arrangements. Have you received a promotion at work? Or obtained a cash windfall? If so, looking at ways to reduce your mortgage period over which the debt is paid can save you thousands or tens of thousands of pounds in loan interest.
Whatever your circumstances, it makes sense to Book a Free Mortgage Appointment with your advisor on a periodic basis, perhaps once every 24 months. In any event, when fixed interest periods or redemption penalty periods expire, you should be diarising a meeting with your mortgage advisor to obtain an overview of how best you might save money. Three months before the subject date is best as it gives time to arrange the move if it proves profitable.
Contact Mortgage Required to speak to a mortgage adviser on 01628 507477.
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