Important information for when your current mortgage deal ends

When you buy a new home, everyone is there to help you. Mortgage broker, estate agent, solicitor etc but………. what happens next?

Your mortgage rate and payment amount will often be on a set deal for a certain number of years or months. You will work out your budget accordingly and start paying the mortgage and bills.

But what happens when that deal ends?

If you don’t do anything at all then you will automatically move onto your lender’s Standard Variable Rate (SVR). This is likely to be higher than the rate on your present mortgage deal and as the name suggests is a variable amount so could change at any time by going up or down. Many people move onto this rate and never think to check if they can save money elsewhere.

Your mortgage broker should be in touch a few months before your deal ends and can look to see what alternative rates are available on the market. He/she will have access to many lenders and rates and can advise which, if any, might be suitable for you. They will be able to compare full fees, rates, and payments to ensure you move to the best option for you.

On the other hand, having spent so much time at home recently, you may have decided that home improvements are a necessity! That kitchen you tolerated last year may suddenly have become the room you most dislike. Or you and your employer may have decided that working from home is a great idea and you intend to continue so you need some extra space for a home office. To make these changes you may need to look at extra borrowing to fund home improvements and alterations.

So whichever scenario fits your circumstances it is always worth taking the time to speak to your broker to find out the best options for you. Just like shopping around for your home or car insurance on renewal your mortgage broker may be able to help you save money on your mortgage payments, reduce the term, or help you to release some of the equity in your property to help with home improvements or debt consolidation.

What better way to spend an hour of your time? Nothing to lose but hopefully everything to gain!

Book an appointment now to find out how we can help.