Switching your mortgage could save you a large amount of money
With many people resolving to manage their money better in 2018, it is no surprise that January is the most popular month of the year for switching a mortgage.
For the two million homeowners currently on a standard variable rate (SVR), opting for the best market deal in January could put £4,000 back in your wallet over the course of 2018.
Here we detail our top three tips to help you save on your mortgage in 2018.
Look into changing three months before your initial term ends
When the initial fixed term of a mortgage ends, mortgage lenders transfer you onto their SVR. This typically has a much higher rate of interest.
For example, Nationwide offers a two-year fixed rate of 1.99 per cent while its SVR is 3.99 per cent.
Set a calendar reminder to look into your options with Fish4Mortgage three months before your initial term ends to avoid paying more than you need to.
Just one month on your lender’s SVR can cost you hundreds of pounds in additional interest.
Let us shop around for the best deal
When the time comes to remortgage your house, we look at the whole of the market to ensure you have every option to guarantee that you get the right deal for you.
Speaking to a broker like Fish4Mortgage, rather than going straight to a lender, means you’ll get a much bigger picture of the deals available on the market.
We’ll also help you to make an informed decision based on your financial situation.
Overpay while interest rates are low
Interest rates may have nudged up recently but they are still historically low.
If you are in a position to afford to overpay on your mortgage, this is a great idea as it can reduce your overall debt.
This will be harder to manage when interest rates rise further, which they may do in the coming years.
Calculate how much you can overpay each month as there is usually a limit before a penalty applies.
For most fixed-rate deals this is usually up to 10 per cent of the remaining mortgage balance per year.
If you would like to take advantage of some of the best mortgage deals on the market, speak to one of our friendly advisers today to find out more.