How much is being wasted on standard variable rates?
By not planning ahead, millions of people are wasting money by not remortgaging before their current deal expires.
Many homeowners do not review their mortgage before the existing one comes to an end. Once your existing deal finishes you automatically move to the lenders standard variable rate which is typically much higher than other new deals. Your lender would usually offer you alternative rates to stay with them and you should also be looking at the market as a whole to see which is the best overall deal. Remortgaging typically takes up to 8 weeks to put in place whilst switching rates with your existing lender can be very quick.
Lenders offer mortgage finance up to 6 months before your existing deal expires. This allows you secure rates in plenty of time should you feel they may increase. Should you decide to stay with your existing lender, some will allow you to break your current deal up to 4 months before it expires and take advantage of a new deal without incurring early repayment charges. This works very well if you have a higher fixed rate which is due to expire and you want a new one at a lower rate. I have saved clients £1,000’s against what they are paying now by taking up this option.
Whether you should stay with your existing lender or move to a new one is dependent on a number of things e.g. loan size, existing lender offering and your financial circumstances. One thing that is true for everyone is, don’t leave it until the last minute as you could be wasting £100’s if not £1.000’s by delaying.
Speak to Darren Littler Mortgages. We can review very quickly the best options and deal with your existing lender for a new rate as well as look at the alternatives in the market.