The Financial Products You Review
When your mobile phone contract expires you will review. Utility costs and suppliers will be reviewed when these contracts end. Credit cards will be switched to zero interest deals when existing deals end. You do this with all these products and services because it’s easy and saves you money.
When was the last time you reviewed your mortgage? And if your current mortgage deal has ended why haven’t you reviewed and looked at re-mortgaging?
Lets Look At Some Figures…
For a client who’s mortgage deal ended and they were now on the Lenders Standard Variable Rate of interest…
◼Mortgage Outstanding £130,000 @ 3.99% SVR
◼Property Value £256,000 (50.78% LTV)
◼Term Remaining 20 Years
◼Monthly Repayment £787
◼Mortgage Outstanding £130,000 @ 1.19% Fixed 2 Years
◼Property Value £256,000 (50.78% LTV)
◼Term Remaining 20 Years
◼Monthly Repayment £608
✔Monthly Saving £178
✔2 Year Saving £4275
Through re-mortgaging onto a two year fixed rate mortgage the client would save £178 per month and £4275 across the two year fixed rate period. Another way of looking at the savings is to consider what you could do with the money! A great holiday or a couple of family meals each month at a nice restaurant. You could even consider reducing the term remaining on your mortgage if repayments are affordable.
Take a look at the Orchard Mortgage Solutions Mortgage Repayment Calculator and have a play around with interest rates – Repayment Calculator
As Easy As A, B, C
When we speak with clients they often tell us that re-mortgaging seems like a lot of hard work. It’s not and it shouldn’t be. As an independent family run mortgage brokerage that is directly authorised by the FCA. We are able to offer mortgage solutions from most lenders. Therefore ensuring you receive the best advice and re-mortgage deal that suits your requirements.
Customers are at the center of everything we do and we have published testimonials from many satisfied customers. We aim to make the re-mortgage journey as easy as A, B, C. All we ask from yourself is that you provide us with documentation that lenders require and commit about 45 minutes of your time to a phone based interview. So that we can better understand your needs and requirements.
Costs of Re-mortgaging
When switching mortgages you also need to take into account costs associated with remortgaging…
1️⃣ Redemption penalties if you are tied into a mortgage product. There are however unlikely to be charges if you are on a Standard Variable Rate (SVR) mortgage.
2️⃣ Valuation & Legal Fees although many lenders offer free valuation and legal when remortgaging.
3️⃣ Exit Fees might be charged when you leave your current lender.
4️⃣ Booking/Arrangement Fees might be charged by your new lender.
5️⃣ Fees charged by your Broker for arranging your mortgage.
For a no obligation chat and to review your current mortgage call today on 01257 543013.