Mortgage deal coming to an end? 5 top tips to make sure you don't get left out in the cold
The letter has arrived on the door mat. Your mortgage deal is shortly due to end. What do you do? Here are some top tips :-
1) Don't ignore it!
We all have busy lives. However, ignoring your mortgage renewal date may mean your monthly payments could drastically increase. When you open your bank statements and see the new payment, tears may roll down your eyes as you panic & hurry to sort out a new deal. Therefore, please do not ignore it.
2) Save the date
You should be considering your remortgage options approximately 3 months before the end of your deal. This will allow plenty of time for you to find a new deal and complete the necessary application & legals so your new mortgage is ready to go as soon as your old one expires.
3) Don't take the easy option!
Your existing lender will no doubt write to you and offer you a deal to follow on from your current one. All they may ask you to do is to fill in a form, speak to their call centre or go online to move onto a new deal. Problem solved. STOP. Your circumstances may have changed from when you made your original lending application. This is a great time to review your aims, goals and requirements as well as seeing what else is available.
4) Don't go straight to your bank
I have been banking with Bank XYZ all my life, it will be easier to go straight to them, won't it? You may have opened your bank account with your parents when you were a child because you became part of Bank XYZ's kids club and they gave you a free toy. Of the many lenders out there, what is the probability that your current bank has the best deal for you?
5) Consider using a mortgage professional
Have you got hours and days available to trawl online or spend your weekend going from every bank to building society on the high street? A suitably qualified mortgage broker could assist you with finding the best deal for you. The right solutions may even be with a lender that you have never heard of. By taking the time to finding out about your personal circumstances, they may be able to give you advice and recommendation about the best deal for you. If you decide to use a broker, always ask to see their terms before you engage their services and find out about their charges. Some brokers may even offer you a free initial consultation. They may suggest that staying with your current lender on a new deal is the best strategy and be able to assist with the process of moving your mortgage onto a new deal.
The UK remortgage market is very competitive and there are many lenders competing for your business. Make sure that you do your research and don't just go for the easiest option. You could be making a very costly mistake with one of your largest monthly financial commitments.
R3 Mortgages offers a free, no obligation initial consultation. To discuss your requirements call 01702 742 373.
The contents of this article are for the purposes of general awareness only and does not constitute advice. Readers should take appropriate professional advice upon their own particular circumstances. The author does not accept liability for any errors or omissions.