How much could I save? - If like many
people you’re on your lender’s standard variable rate (SVR) – the default rate
most fixes and trackers revert to when the intro deal ends – the savings can be
huge. Most SVRs are at 4% or higher
Find what deals are available - Start
with a comparison site that includes all deals, including ‘direct only’, which
aren’t offered by brokers
Use a qualified mortgage broker to
match your situation to a top mortgage. Ask if the broker will check all deals
available to them and not just a panel of lenders
Some phone-only brokers such as
www.LandC.co.uk are fee-free. If you want face-to-face help, ask friends for a
local recommendation or find one via www.unbiased.co.uk or www.VouchedFor.com
Is your credit score good enough? -
Avoid any applications that leave a footprint on your file – such as credit
cards, contract mobile phones or monthly car insurance – in the few months
before applying for your mortgage
Are the repayments affordable? - For
the past couple of years, lenders haven’t just checked if you can afford the
monthly repayments at the current rate, but if rates were 6% or 7%
Homeowners have now been urged to
lock in cheap deals, especially borrowers who are sitting on lenders' Standard
Variable Rates (SVR), which are typically far more expensive than fixed rates.
Charlotte Nelson, finance expert at
moneyfacts.co.uk, said: "The fact that some rates are starting to creep up
for re-mortgagors is unwelcome news for those borrowers who have yet to
capitalise on the heightened competition that has caused low rates to appear in
the market.
“While the lowest rates in the market
remain put for the time being, lenders have started to tinker with their
products that are not in the spotlight.
“Due to all the talk surrounding base
rate, borrowers have started to consider their options in case the base rate
were indeed to increase."
“Borrowers should not be put off from
remortgaging, however, as there are still savings to be made, particularly as
the average SVR currently stands at 4.60 per cent.
"And of course, the rate is not
the only cost for borrowers to consider; they’ll want to be on the lookout for
decent incentives and regularly check in on the Best Buys to see what is out
there.”
