‘As a 5-star, recommended mortgage broker in Bournemouth, I always recommend a full review of your personal circumstances, needs, and plans’.
Changes in circumstances often mean a change in needs | Independent mortgage broker Bournemouth
Changes to income, employment, family, and financial commitments warrant a full review of your mortgage needs. Many who take a new product with their existing lender, opt for a like for like mortgage that offers the lowest interest rate. Rarely is any thought given on how to pay less interest, reviewing attitude to repayment risk, and the costs involved. That is great for the lender as it’s a fast business renewal with no risk, as direct to lender rate swaps are conducted on a non-advised basis.
The aim is to pay as little as possible
The aim of any recommendation must be to ensure long term affordability, whilst repaying the mortgage over the shortest possible term, in order to repay the lowest amount of interest and fees. Your mortgage must reflect your attitude to risk and consider any foreseeable changes in your future circumstances. Whenever you re-mortgage you should establish exactly what you can afford to pay, as reducing your mortgage term could save you a significant amount of money over the mortgage term.
My changes are negative
Don’t worry! There are options available to you. I completed a re-mortgage for a client who’s income had stopped due to suffering a critical illness, and his wife receiving statutory maternity pay. They were wrongly informed that they would have no choice but to stay on their current lender’s high standard variable rate, which would have put their home at risk.
Whilst this is quite an extreme case, it is common that circumstances change. Since the financial crisis in 2008, we have seen increased regulation and restrictions on certain types of lending. Interest-only mortgage lending is one of these areas. Under the new lending rules, many would not be able to obtain this type of mortgage today.
Firstly, it is important to look at what your options are from the whole of the market, including your current lender. There are rules to ensure that you are not penalized for changes in circumstances and policy that means you are still able to access a competitive deal. Under new rules, your current lender would offer you a product from their current product range under the mortgage prisoner rules.
Explore your options
In today’s competitive marketplace, with lenders competing for your business, it makes sense to review what is on offer. At Key To Mortgages, Bournemouth we can search mortgages from the whole of the market to ensure you never pay more than you need to
You may have to pay an early repayment charge to your existing lender if you re-mortgage. Your home may be repossessed if you do not keep up repayments on your mortgage – SOL8826
Website Link: Independent mortgage broker Bournemouth
