With 2011 fast drawing to a close and attention turned to shopping, cooking and partying anyone can be forgiven for not considering their mortgage. But once we’re into the New Year there should be no excuse for making sure you get the best deal on what is likely to be your biggest monthly expenditure. Whether you have a mortgage on your own home or are a landlord you should take a few moments to take stock of the situation and see if you can save money.
Fixed rates ending
In the early part of 2012, thousands of borrowers who took out fixed rates mortgages in previous years will see their deals come to an end. If you’re one of these people, check when your deal is ending and what rate you’ll be moving to – it may well be your lender’s Standard Variable Rate which means you could be paying over the odds for your mortgage.
A quick way to see whether you may be able to save money is to use our 1 minute mortgage check calculator – remember to use the rate you will move on to when your existing deal comes to an end.
If you’re looking to buy a new home then you’ll find a wider choice of mortgage deals available to borrowers with a small deposit (10% or less) than was on offer at the beginning of this year. And if you’re a first time buyer, don’t forget that the temporary stamp duty exemption ends at the end of March.
Buy to let
If you’re a landlord with a buy to let mortgage (or mortgages), you may have recently looked to see if you can switch and save money but found you were unable to. The good news for you is that we are seeing increased activity in the buy to let sector with improvement in both rental yields and lenders’ mortgage criteria. As a result, it is definitely worth seeing in the New Year if a switch is worthwhile. And if you’re looking to extend your portfolio, you may be able to release some equity elsewhere and obtain a new buy to let mortgage to buy a new investment property.
The overall message is, don’t bury your head in the sand and think that because the news is full of negative stories about the economy that you can’t take action to improve your personal situation. It takes only a short while to find out if you could cut your monthly mortgage payments and the benefits could be a welcome boost at the start of 2012.