Never get stuck on the lenders Standard Variable Rate
An applicant never wants to get stuck on the lenders standard variable rate especially now that rates are at an all-time low and lenders are providing cracking rates on their fixed products. Fixed rate products could save applicants hundreds of pounds per month but they only last for a certain period of time. When the fixed rate product ends applicants end of slipping into the lenders standard variable rate (SVR). As lenders set their own standard variable rates you could see your monthly mortgage payments shoot up. This is due to SVR’s being quite a bit more expensive that a fixed rate deal. Speak to a Mortgage broker about the rate that you are on and see if you can save money on your mortgage.
Re-mortgage your home and get a better deal.
It may be worth re-mortgaging your home. In doing so you can shop around for the best deals available in the market especially if you speak to an independent mortgage broker who can advise you on the whole of the market and get the best deal available to you. Revolution Finance Brokers is completely independent and we have an up to date and easy to use comparison service on our site to make searching for the best deal as easy as possible. We also have a dedicated phone service team who will endeavour to get the best deal available for you.
Put a bigger deposit down and improve your LTV (Loan to Value)
Lenders will calculate the amount of interest to charge based on the Loan to Value of the property. The lower the Loan to value the lower the interest rate will be. For example if you put down a deposit of 10% you will generally be looking at a higher interest rate than say someone putting a deposit of 40%. The pricing between the interest rate thresholds can be quite substantial so paying a bigger deposit and moving from 90% LTV to an 85% could potentially save you thousands of pounds.
Make Overpayments
Making overpayments may not sound as a way of saving money on your mortgage, you will be giving up your disposable income but in doing so you will be paying off your mortgage a lot quicker thus saving thousands of pounds as it reduces the amount of interest that you owe. Most lenders allow applicants to make 10% overpayments per year, in affect you can pay 10% of your loan and significantly reduce the amount of interest to be paid.
Get Expert Mortgage Advice
Get sound and tailored advice that will suit your mortgage needs from an independent mortgage advisor. We ensure that all our clients get the right mortgage product that suits their individual needs. We are not a ‘one size fits all’ company. We provide individual mortgage advice.
Contact us now to discuss your personal options, Revolution Finance Brokers specialise in commercial and residential finance in Essex, Kent, London and Hertfordshire.
