- Is your current mortgage balance no more than 90% of your home’s value?
- Do you have a solid credit history and have you kept up with your mortgage payments?
- Will you have enough income after your mortgage payments to meet your other financial obligations on time?
- Is your income secure and reliable?
- Are you committed to switching mortgage?
If you can answer “yes” to these questions, there’s a good chance we can help you switch mortgage to a more affordable lender. Plus, keep in mind that you can save a significant amount of money by getting better rate when switching mortgage protection insurance. Click here to apply online to switch your mortgage.
When you take out a mortgage, the initial rate you pay is typically fixed for a certain period of time. After this period expires, your mortgage will revert to your provider’s standard variable rate (SVR). The length of the initial rate period varies depending on the specific deal you’ve chosen. For instance, a two-year fixed mortgage rate will either last for two years from the date you take out the mortgage or until a specified date set by the lender.
Discounted variable rates may also be set for a specific time period. Once your initial rate period is over, you’ll likely be automatically transferred to a higher SVR, resulting in an increase in your mortgage repayments. Your lender should notify you when your initial rate is about to end. If you are thinking about switching mortgage to a better deal, it’s a good idea to keep track of the end date yourself. Tis will give you enough time to compare different mortgage deals. You should start looking at options at least three months before your initial rate period ends.
If you compare mortgage offers, you’ll typically notice that lower interest rates are offered for deals with lower loan-to-value (LTV) ratios. As you pay off your mortgage balance over time and your home value appreciates, your LTV can decrease. Consequently, the rates you may currently qualify for could be lower than the ones you received when you initially obtained your mortgage, since you’re likely to fall into a lower LTV category.
Receiving a salary increase, inheriting a substantial sum of money, or paying off a large debt can all result in an improved financial situation, which could potentially provide you with extra funds to allocate towards your mortgage payments each month. However, before making additional payments on your mortgage, it’s crucial to confirm that your existing mortgage agreement permits overpayments. In case it doesn’t, and you’re okay with any applicable early redemption fees, you could explore alternative mortgage deals and consider shortening your mortgage term. Though your monthly mortgage payments would increase, this strategy could ultimately result in saving a substantial amount on interest costs.
During times of financial uncertainty, mortgage borrowers frequently prefer to secure a fixed-rate mortgage deal as it provides them with a predictable monthly mortgage expense. Borrowers who have variable rate mortgages may opt-out of the risk of their lender’s base rate increase and, as a result, a possible hike in their mortgage payments.
In case mortgage rates continue to decline over an extended period, you may discover that your current mortgage rate is no longer as competitive as it used to be. In such situations, even after factoring in any early redemption fees and costs associated with obtaining a new mortgage deal, the reduction in rate could still be substantial enough to make switching mortgage worthwhile. However, it’s crucial to seek professional mortgage advice to ensure that your finances align with your objectives before making such decisions.
Should you be considering a mortgage switch, our team will conduct a comprehensive evaluation of your application and accompanying paperwork. This will provide us with a holistic view of your financial management abilities. Our goal is for you to obtain a mortgage from us, but we must ensure that you don’t overextend yourself financially. As we collaborate with all the primary lenders, we can provide you with the most favourable rates available for switching mortgage. Click the link below to instantly apply for a mortgage online through GMC Mortgage Advisors.
Should you be considering a mortgage switch, our team will conduct a comprehensive evaluation of your application and accompanying paperwork. This will provide us with a holistic view of your financial management abilities. Our goal is for you to obtain a mortgage from us, but we must ensure that you don’t overextend yourself financially. As we collaborate with all the primary lenders, we can provide you with the most favourable rates available for switching mortgage. Click the link below to instantly apply for a mortgage online through GMC Mortgage Advisors.