We’re not shy when it comes to talking about the benefits of remortgaging – and for good reason, too.
A recent story in The Intermediary, a mortgage industry title, reported that a staggering 370,000 mortgaged homeowners on variable rate mortgages are not switching to a fixed rate mortgage, despite that fact that switching mortgage could save them lots of money.
Just to put that in perspective, that’s the entire population of Stoke-on-Trent. Or, to put it another way, that’s around 2.5% of the total number of UK homeowners. And when we say lots of money, The Intermediary suggests an average of £1,240 per year. No small beer.
Given the rising cost of living, it begs the question why such a large swathe of the UK’s mortgaged homeowners is not looking to apply for a cheaper mortgage. Sadly, we don’t have the answers – even as a Guildford mortgage broker! However, we suspect it’s one of the following reasons:
1. Time (or lack of it)
When you’re busy with a job, a family or even when you’re having fun, stopping for a moment to review your current financial situation can easily get placed at the bottom of the pile. And, let’s face it, it’s a bit of a chore. Nobody’s ever really that desperate to tackle life admin – even when doing so could be advantageous. However, given the number of interest rate rises that have taken place over the last seven months, sitting down to tackle the increasing base rate, and therefore increasing mortgage rates, should probably be somewhere near the top of your list.
TOP TIP: Get a good mortgage broker. They will handle the entire mortgage application from beginning to end including searching for the best UK mortgage deals, lender liaison and account management – so you don’t have to.
2. No help
Sometimes even the small tasks can be overwhelming without help. In order to get the best mortgage deal, it takes time, experience and contacts – all of which a good mortgage broker should have. Don’t suffer in silence or lose any more money by remaining on a variable rate mortgage. Get the help of a professional and let them do the legwork.
TOP TIP: Most mortgage brokers offer a free mortgage consultation, so book one in to find out what they can do for you and whether or not you like them. A good mortgage broker is invaluable, as they can access significantly more deals than the average person.
3. Head in sand
We’ve all done it at some point. But hoping it’s all going to go away is not a good strategy if you wish to get a cheap mortgage. In fact, if rates continue to increase at the frequency that they have been of late, putting off changing your mortgage for as little as even a few weeks could mean that you miss out on significant savings on your next fixed rate mortgage deal.
TOP TIP: Keeping your head in the sand will only cause more pain. Don’t waste any more time. Grab the bull by the horns and ask a mortgage broker to start looking for the best mortgages available today. The sooner you do, the sooner you’ll be able to take advantage of the mortgage deals of the day – before they’re replaced with less competitive deals.
As you can see, the three barriers to switching a mortgage – from our perspective, at least – can all be removed with the help of a mortgage broker. So, make sure that you’re NOT one of the 370,000 and switch your mortgage.
If you’d like to find the best mortgage deal, switch to a fixed rate mortgage or would simply like mortgage advice, contact our team of Guildford mortgage advisers on 01483 238280 or e-mail info@complete-mortgages.co.uk.
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