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20 Reasons Why You Should Consider Switching Mortgages RIGHT NOW!


In 2020 we’ll have been in business for 20 years! To celebrate, each month we’re sharing 20 top tips about topics that are closest to our heart. Our aim is always to provide you with the best possible information so you can make informed financial decisions. This month we’re talking about how you can save money by switching mortgages.

20 Reasons Why You Should Consider Switching Mortgages RIGHT NOW!

When your mortgage comes to an end, many people end up on a Standard Variable Rate (SVR) either because they don’t realise there’s a better option, or because they have become a mortgage prisoner – trapped in their current mortgage due to circumstances that might well be beyond their control.

But the situation has changed. In this article, we’ll outline how switching mortgages can save you money, why the process is much easier than you think and how we can help you find a mortgage that best suits your changing circumstances.

Mortgage Holidays

Before we get into the details about switching mortgages – an important note about mortgage holidays. Lenders are currently offering a 3-month mortgage holiday because of the Coronavirus pandemic.

It’s a difficult time right now, especially if you’re coping with a fall in income or the loss of your job. We know for many people this scheme is a lifeline but it’s important to do it right, so it won’t affect your credit rating.

We’d love to help. Contact us for fee free advice and we’ll talk you through the specifics of the arrangements as they relate to your mortgage lender. Email us on mortgageholidayhelp@downtonandali.co.uk

20 Reasons Why You Should Consider Switching Mortgages

Switch Your Mortgage – Save Money

  1. Avoid going onto a Standard Variable Rate (SVR) – When your mortgage comes to an end, if you do nothing you’ll simply move to your lender’s Standard Variable Rate (SVR). SVRs tend to be much higher than other types of mortgage – in some cases the rate is double. In January 2019 the average SVR was 4.9%, compared to 2.52% for a typical 2-year fixed-rate mortgage. If you don’t switch away from the SVR, over the lifetime of your mortgage you’re likely to end up paying thousands more in interest than you need to.
  2. Get advice on the right mortgages – As a member of Openwork Ltd, one of the UK’s largest financial adviser networks, we have access to competitive rates from some of the UK’s best-known lenders. You could approach mortgage lenders directly, and they will advise you about the mortgages they offer, but you won’t necessarily know how their deals to compare to others on the market. In fact, as a member of Openwork, we get access to some mortgages that aren’t available on the high street.
  3. Mortgage Prisoners – It’s even more important you act quickly if you’re a mortgage prisoner. Whether you ended up in this situation as a result of negative equity, or because you were adversely affected by the changes in affordability rules in 2014 or because of changes in your circumstances such as a job move or credit issue, there might well be good news for you. If you’re up to date with payments and not looking to borrow additional money, we can help you get a more appropriate assessment with your current lender which will make it easier for you to find a mortgage to meet your needs.

If you’d like to find out more information about saving money by switching your mortgage, please click here to download your free guide.

Switching Mortgages Is Easier Than You Think

  1. Finding a new mortgage is easier than getting your first one – This time around you don’t have the stress of moving! So, no estate agents, negotiating contracts or worrying about the chain!
  2. Currently, there are no on-site evaluations – Because of the Corona virus pandemic, you can switch mortgages without having to go through an on-site valuation as valuers are not visiting homes right now. This can save you money.
  3. You might not even have to switch lenders – When you undertake a Mortgage Review, your lender might offer you a tempting deal to entice you to stay with them…
  4. … but take advice about how their offer compares to other mortgages on the market. As a member of Openwork, we have access to competitive rates from most of the UK’s biggest lenders.
  5. A mortgage review is a straightforward process that can be completed online.
  6. We can even complete your mortgage application on your behalf…
  7. …and do all the legwork for you, including liaising with solicitors, valuers, and surveyors (if necessary)*.
  8. We can advise you about all the costs involved – so there are no surprises, you know exactly what you are getting into before you start.
  9.  We can also advise you about financial protection – including critical illness insurance and serious illness cover, income protection, life insurance, and mortgage payment protection insurance (MPPI).

If you’d like to find out more information about Mortgage Reviews please click here to download your free guide

Changes in Circumstances Impact The Mortgage You Need

  1.  As you get older, your circumstances change and so do the sorts of mortgages that suit you best. We will make sure we are fully informed about your circumstances and overall financial position, so we’re in the best place to work out which sort of mortgage suits you best.
  2. Using all this information, we’ll use our knowledge and expertise to advise you which sort of mortgage – tracker rate, variable rate, fixed-rate, discounted rate flexible, or off-set mortgage – might suit you, or if it would be better for you to take advantage of a government scheme.
  3. We can also talk through the advantages and disadvantages of a capital – capital and interest/repayment method investment or interest-only repayment methods.
  4. As you get older, you might focus on paying off your mortgage early. We can check if your current deal has exit fees or early repayment charges.
  5. Or you may need a mortgage with lower monthly repayments if, for example, you’ve changed jobs or had a baby.
  6. You might need to raise extra money to create more space or improve your home, so you don’t have to move as your family circumstances change.
  7. And don’t put your dreams on hold because of the Corona virus. We advise starting to plan now as all the preparation can be done virtually, so you’re ready to press GO! when we’re all allowed to move freely again.
  8. You might even be able to take advantage of our Design. Finance. Build. Service, where we work with a builder and interior designer to deliver a full renovation*.

If you’d like to find out more information about mortgages that suit your changing circumstances, please click here to download your free guide

You might be able to save money if you switch your mortgage to a better deal. And right now, while there are no on-site valuations of properties taking place, the process is even easier. Don’t leave it too late and end up paying more in interest than you need to. Contact us for more information tailored to your circumstances.

*The services promoted here are not part of the Openwork offering and are offered in our own right. Openwork Limited accept no responsibility for this aspect of our business. These services are not regulated by the Financial Conduct Authority.

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