What the papers said about remortgaging and saving for a rainy day

With so many rock-bottom mortgage rates on offer at the moment, there is often plenty of choice for those looking to remortgage. The Mail on Sunday looked this weekend at the importance of timing, and the need for homeowners to be aware of when their current scheme ends. A lender will generally switch a home loan to its higher Standard Variable Rate when the incentive period expires, and this can result in a significant jump in the monthly repayments.
With some careful planning however, this can be avoided. Borrowers are recommended to start shopping around the wider market around 2-3 months before the end of their deal, and also contact their existing lender to check what they will offer as a comparison. This should allow enough time to decide on, and apply for, a new mortgage, and make a seamless switch from one to the other.
Elsewhere in the weekend’s press, the Independent reported that, as a nation, we are now putting just 4.4% of our disposable income into savings – just half the level we were depositing 4 years ago. Debt advice charities urged people to put even a small amount away each week, and take a more pro-active approach to managing our finances. For those that are able, overpaying on the mortgage each month while interest rates are low is a good way to start reducing debt.

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