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.
Related articles:
Download our Free First Time Buyers Guide
Recent posts
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.
Pros and Cons of Equity Release
11 days ago
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.
Your House Viewing Checklist
12 days ago
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.
Half of over 60s predicted to benefit from accessing housing wealth through Equity Release
15 days ago
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.
Average Age of the First Time Buyer in the UK
22 days ago
The average age of a first-time buyer in the UK is two years older than 10 years ago. This is understandable with managing the cost-of-living and challenges within the economy such as high interest rates making it difficult to get onto the property ladder.
Delayed Start Mortgage from Skipton
24 days ago
Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months.
According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.
Gardening Tips for Beginners
2 May 2025
If you have recently moved into a property with a garden that requires a little TLC, or you’d like to get on top of your current green space, check out our tips.
More information
Trusted by
