Whilst the Bank of England Base Rate has been at 0.5% for 30 months, not all mortgage rates are as mouth-wateringly low. Many lenders’ Standard Variable Rates (SVRs) are now between 4% and 6% - well above the current crop of best buy deals, meaning you could save a lot by remortgaging.
If you are currently on your lender’s SVR, check the rate you are paying and then use our 1 minute mortgage check calculator to see if we think you can access a better deal and save money. If you have friends or family on their lenders SVR, be sure to tell them about the calculator too as its extremely quick and easy to use.
Reviewing your mortgage is also an opportune time to consider other things too. For example, if you switch deal should you go for a fixed or variable rate mortgage and how long should the scheme period be. The great news here is that your adviser will guide you through these choices, finding out what the impact would be on you if interest rates rise. If you have concerns about this then there are a good choice of fixed rates over 2,3,4,5 and 10 years. However, if that isn’t a concern you may decide a discount or tracker rate would suit you better.
You also may want to take the opportunity to borrow additional funds if you have any home improvements in mind or have other outstanding debts you’d like to consolidate, and we’d always recommend reviewing your life insurance arrangements to make sure the cover you have is appropriate to you current circumstances. You may even find that you can save money in this area too.
If you take action now, your new mortgage could be in place before Christmas when any savings will come in useful for the festive period.