It is essential to regularly review your mortgage to ensure that you have the most appropriate deal in place based on changes in both position and time. Most mortgage products have a life span of 2, 3 or 5 years, at which point your interest rate is likely to change. By continuously monitoring your circumstances and ensuring your mortgage accurately reflects this, with the most competitive mortgage for those circumstances, you help ensure you have the right deal for you.
Example – Anonymous from Shropshire
- Current mortgage payment £667 with an outstanding mortgage term of 20 years.
- During a review, as his current fixed rate had expired, one of our advisors highlighted to him that should he not review the mortgage, then due to the change in rate, his monthly payments would change to £735.
- After a detailed discussion, the client had actually benefitted from several pay rises since originally taking the mortgage out and was now in a position where they could afford a mortgage payment of £700 per month.
- Due to the increased budget and favourable rates of interest, the client was extremely surprised and happy that our experienced advisor was able to reduce his mortgage term to 16 years, whilst keeping the payments at £697.
- Consider how much money this client will be saving by not making this monthly payment for those additional four years!!!