Did you know? Doing nothing at the end of your mortgage introductory rate could cost you!
If you currently have a fixed rate mortgage you should take note of when the rate comes to an end and be prepared to consider a remortgage.
Doing nothing means your current lender will move you over to their Standard Variable Rate (SVR) this tends to be more expensive with monthly repayments higher when compared to most readily available fixed rate mortgages.
What is a Standard Variable Rate Mortgage
A Standard Variable Rate (SVR) Mortgage also known as a Variable rate mortgage is a lender’s basic mortgage rate. The rate of the mortgage can go up as well as down go down and is partly influenced by movement in the Bank of England base rate. However, a Standard Variable Rate might change even without base rate increases.
Of Course, there are a small number of positive benefits to being on a SVR. The main benefit is that there are often no early repayment charges.
Be an active borrower
Active borrowers are conscious of the date their mortgage introductory term ends and understand that their monthly repayments will rise if they don’t switch over to another product or lender. It is good practice to start looking for an alternative mortgage product or lender 3-4 months prior to your current product expiring.
At Prospect Tree Mortgages customer service is paramount, this means that when you arrange your mortgage through us you can rest assured knowing that we’ll stay in touch and give you a reminder before your introductory rate comes to an end. This way you’ll never end up on a lenders Standard Variable Rate.
Our expert mortgage brokers are highly experienced and ready to discuss your requirements. Get in touch to arrange a free no obligation telephone consultation on 0800 8620 840 or fill in our contact form.