How to take control of your mortgage
The power is in all of our hands to take responsibility and do a little digging into what can be done. In this article we are going to show you how to take back your mortgage and do it your way!
What to do if you are coming to the end of a special rate mortgage?
What you need to do and be aware of. Find your mortgage offer issued by your lender. Go to section 3. Here you should find the end date of when your rate expires. Check that the date is from when you moved in, or from the date of your mortgage offer.
Why you are better off to take action rather than just wait for things to happen to you
The rate WILL increase on your lenders standard variable rate. The vast majority are presently higher (July 2023) than what your current rate. You will end up paying more a month. If you take action we or you can start researching what are your best options. Such as, changing your lender (re mortgage), or getting the best option with your current provider.
The best time to take control of your mortgage and do it your way
Commonly within six months of the expiry of your deal. You can change it, when you want to, but exiting your mortgage early may result in charges known as a redemption charge. So it is important to weigh upfront costs over savings in the long run.
How to get the best deal of your mortgage.
Use a professional mortgage broker, and check their fees before processing.
Comparison sites are generic and will list the best offers. These offers are not based on your own personalised circumstances, so be aware these do not have the intelligence of presenting you with the best offer for you.
Things you will need to know when looking at changing your mortgage
A new lender will need to see ID, proof of earnings, bank statements see whether you can afford and have means to pay back the loan. If you wish to see what products and options are available to you with your current provider then it is possible they may not require the above from you again, depending on the offer available to you.
If your personal circumstances have changed since you originally took out your mortgage we might be able to help you with your current lender. So, just give us a call.
Why you should take action now if you are struggling to pay your mortgage
If you do not want to lose what you have built up.
Options such as mortgage holidays can be a short term fix to a tricky situation. Be aware that mortgage holidays only work for a very short term solution because the mortgage balance increases by the unpaid interest.
Interest only mortgages can reduce the monthly payments, but will not reduce the balance of what you owe. For example if you owe £200k you only pay the interest on the loan, and still owe £200k. This option is only really suitable for a short term solution, or if a future inheritance, shares, investment or downsizing is accessible to you.
Is extending the term of your mortgage an option to reduce monthly payments?
Potentially yes depending what provider you chose to go with, but it is worth looking at. Just take into consideration potential retirement and how your income will be affected.
The Mortgage Charter…What is it, and how does it support you?
It’s basically a set of standards that have been set up to support those of us worried about rising interest rates.
This charter changes measures for both lenders and borrowers…So how does this help you?
In truth it’s about communicating with your lender for information and support without it impacting your credit score. Meaning you can communicate your concerns to see what can be done without living in fear.
The mortgage charter focuses on what lenders can offer their customers, like switching to an interest only mortgage, or an extension on the term of your mortgage. Both options reduce monthly repayments, but as mentioned in the above paragraphs need to be considered carefully, or discussed ideally with a professional prior to deciding.
We are here for you. Together we are stronger.
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