If you have a fixed mortgage that is ending you may be concerned about how this change will affect your interest rate. Perhaps, you have already spoken to your bank or building society to discuss the options available. This month, I would like to lay out my tips and suggestions to help you avoid the impact of higher interest rates on your mortgage.
When should you look at your mortgage?
You should start speaking to a mortgage broker up to 9 months before your fixed rate period ends. This is the earliest you could secure a product with a lender enabling you to have the peace of mind from locking in a rate that will not increase. Importantly, although you are securing this rate early, it does not tie you to starting that product, and should cheaper options arise in the final months of your fixed period you can change to them if you wish.
What if you have already agreed on a new mortgage product?
If your new mortgage product is not yet started, by speaking to a broker, you may be able to alter and improve on the product you have applied for. Speak again with your broker or bank, or contact us here at Path Mortgages to see if the latest drops in interest rates on mortgage products can apply to you.
What if I am looking to move home?
You may be put off updating your mortgage over concern that it may restrict you when you come to move home. There are many factors to consider and the advice here will be different in every case, however, there are still reasons to review your options. Many products allow you to take your mortgage with you to another property, this is called porting. There are mortgage products that have no setup fee and no early repayment charge, meaning you can enjoy a lower rate of interest whilst you’re looking to find a buyer or wait for your sale to go through.
My new mortgage payment is going to be too much a month, what do I do?
A whole of the market Mortgage Adviser like myself is likely to have mortgage products that are lower in cost than those through a specific provider. This is because we have access to the whole of the market and can source the lowest-cost mortgage for you. Also speaking to a Mortgage Adviser may open up further options you may not have considered. This may involve extending the term of the mortgage or consolidating debts to help reduce your monthly expenditure.
The main point I can stress is that early intervention is always the best option to give you a clear picture of your situation and all the possible solutions.
Your home may be repossessed if you do not keep up repayments on your mortgage
Think carefully before securing other debts against your home.
You may have to pay an early repayment charge to your existing lender if you remortgage