Not all the things on our to do lists fill us with excitement at the thought of crossing them off when completed. Reviewing your mortgage is certainly not the most exciting item for most people.
For many of us, our biggest monthly expense is our mortgage payment. If there’s a chance of saving money at mortgage review time, surely we can find the time?
We all know that when a fixed rate comes to an end the rate moves onto the lenders standard variable rate, and generally speaking it is higher than the one you had before. Thus costing your more money per month in interest payments on top of paying back the loan capital.
It may not even make a huge difference to the monthly payment amount and therefore fall to the bottom of your ‘to do list’, but all the time you are on a lenders standard variable rate you are at the mercy of any rate change that may occur. This is the main reason why carrying out a mortgage review BEFORE your existing fixed rate period comes to an end.
It is best to speak to a broker three or four months in advance of the end of your fixed rate period to make sure there is enough time to research and organise the new mortgage deal so when the old one finishes it will simply move over to the new one seamlessly.
Prospect Tree Mortgages are able to look at the whole of the marketplace in order to source the best mortgage deal available to you and your circumstances. This is the most efficient way of making sure you not only have the best deal for you but also save as much time and effort as possible. In short leave it all to us! The vast majority of remortgage deals come with FREE legal work and a FREE valuation. Great incentives to switch to a better deal.
Reasons to speak to Prospect Tree Mortgages about your mortgage
We will explore options that may have previously not been available to you due to credit issues, lender criteria or timescale. After our review and research process you may find a lender with more favorable interest rates is now available to you.
We will explain everything that is going to happen clearly and concisely. There are no stupid questions and it is important we cover any uncertainties you may have prior to applying for anew mortgage. You really can ask us anything, we want you to understand and be comfortable with your new mortgage.
We will tell you what we need from you to go ahead with your application, after this you can leave it with us. We will complete your mortgage application and liaise with the chosen lender throughout the process to get your mortgage offer. This means you can forget about any lengthy hold music chasing up your offer, leave that to us.
Your broker will support you all the way through the process keeping you updated with the progress from beginning to end. If you have any questions along the way we are only at the other end of a phone to chat.
Don’t let your mortgage fall off your radar and end up on the standard variable rate, you really are just throwing your money away. Get in touch and see what we can do for you.
Also – After your broker has helped you once, you’ll find they even save you the bother of remembering in the future as they’ll contact you in advance every time for your review!
Talking shop at a dinner party is not everyone’s idea of a great evening.
I honestly believe this happens to mortgage brokers more than any other profession.…other than maybe doctors.
I was asked about how lenders calculate the loan available for a Buy to Let mortgage. Riveting conversation subject matter I'm sure you'll agree?
The way a lender calculates the loan available on a BTL product via a ‘rental calculation’. This means the amount of rent received is a major factor in determining what the loan available to you will be. Each lender has a different calculation and criteria around which tax bracket you (the borrower) are in, (stop me if this is getting to complicated) changing the figures used in the calculation and giving a different outcome based on your personal circumstances.
The short version of this is you need an advisor who is well versed with Buy to Let in order to not only get the best deal but get a deal at all! We look after lots of portfolio landlords (you are a portfolio landlord if you own more than four properties in most lenders opinions) as well as landlords with one property. With ever changing criteria and a potentially volatile market place it is imperative to seek advice. Aside even from the fact that most Buy to Let lenders are unavailable to the borrower to access directly.
I know helpful!