14 Jul 2016
Interest rates held - could you save money on your mortgage?
The Bank of England has announced today that interest rates are to remain at a record low levels - offering homeowners the chance to potentially save significant sums on their monthly payments by remortgaging.
The Bank of England has announced today that interest rates are to remain at a record low levels - offering homeowners the chance to save significant sums on their monthly payments by remortgaging.
According to the Office for National Statistics, 34% of household expenditure goes towards paying off the mortgage. Therefore it is vital to ensure you are on the most valuable deal and are not paying over the odds for your mortgage.
So how can homeowners access these potential savings?
Here's the five things you need to do to make sure you get the best deal.
1) Check the value of your property
It may have increased in value since you last checked. The higher the property value in relation to the mortgage, the more deals may be available to you if you decide to remortgage – and you may be able to get cheaper deals.
2) Check the market for mortgage deals
This is your starting point for comparing what you’re paying now with what you might be able to get elsewhere.
3) Make sure it's in your benefit to switch
Even though there may be lower rates available you need to take into account any fees associated with switching and the remaining length of your loan.
4) Take what you've found to a mortgage broker
They have access to mortgages that aren’t available on comparison sites so may be able to improve on what you’ve found. They’ll also double check the costs and benefits of switching. Ask for an advised service.
5) Review each year
If you remortgage you may get an introductory deal on your interest rate – when this ends you’ll usually be put on a less competitive variable rate.
Speak to a local mortgage expert
Aberdein Considine has one of Scotland's largest teams of independent mortgage adviser. They would be happy to look at your current mortgage deal and examine whether you could save money.
Call 0333 0044 333 or click here to book an appointment.