Two short stories to make you think “is it worth having a mortgage review?”.
- Colin and Bekki? – Flexibility with a much better rate
Colin asked “is it worth having a mortgage review?”. He is an accountant and being a busy professional he realised that his current fixed rate deal had recently ended and needed to do something about it. He had not changed products with his lender because he had plans to either move or extend his home in the next year and did not want to be tied into a deal with early repayment penalties. He felt stuck, and wanted advice as to stay on the new variable rate being expensive or face exit charges later having taken a new fixed rate?
Had Colin changed products himself, the only options available to him at that time had early repayment charges that might have cost him around £7,500 to exit early if he sold his home. Knowing his plans through our discussions I recommended a product that not only saved just over £350 a month, but it also gave Colin and Bekki the freedom to exit the mortgage at any time without penalty. An incredibly happy client.
- James and Julie? – Mortgage Brokers can get exclusive deals
James runs a thriving engineering business in Barnstaple and asked “is it worth having a mortgage review?”. Since his last mortgage had been arranged, he had changed the business to a limited company (Limited Company Mortgages North Devon – Aspire Financial Services (aspirefs.co.uk)) and his wife had left her employment to focus on their children. He called me for advice because his current mortgage fixed rate deal was coming to an end. He was worried that the change in circumstances would make re-mortgaging difficult. Their mortgage was with a high-street lender.
The exclusive deal
I reassured James and Julie that because it was a like-for-like mortgage with no increase in lending he could simply switch products with his lender. Having done my research I found that their current lender would offer a product that would save James and Julie a small amount each month. But using my access to exclusive products with their lender I found. I could offer them a rate that saved them over £300 a month, needless to say James and Julie were very pleased. There are many types of mortgage, for further information go to Types of mortgage – Money Advice Service
The moral of these stories? Even when you are product switching, call your Mortgage Broker for advice. It could save you money!