Choosing Your Mortgage Customer Service And Reputation Do Count

Choosing Your Mortgage Customer Service And Reputation Do Count

Choosing your mortgage – customer service and reputation do count.
Recent user polls have shown that 18% of​ us have moved mortgage provider due to​ bad customer service .​
28% of​ us have avoided taking out a​ mortgage with a​ particular provider due to​ a​ friend’s bad experience.
Switching mortgages is​ something that many of​ us avoid doing even when it​ would be beneficial to​ do so .​
It can seem like a​ lot of​ hassle but if​ you​ look at​ potential savings it​ is​ often worthwhile .​
We should not leave it​ until we have a​ bad experience with a​ lender before moving our mortgage.
The first thing to​ check when deciding to​ change mortgages is​ whether there are any penalties for leaving your current one .​
Often when we take out a​ mortgage deal we will be tied in​ for at​ least the​ initial period .​
For instance,​ with a​ five year fixed rate mortgage,​ if​ we wanted to​ leave before the​ initial five years had run we would probably be charged,​ in​ some cases thousands of​ pounds .​
Other mortgages have extended penalties,​ so we would still be charged even after the​ initial period has finished .​
If you​ ask your lender they will tell you​ how much it​ will cost you.
Once an​ initial mortgage period ends,​ you​ tend to​ go onto the​ lender’s standard variable rate .​
These are typically higher rates than other mortgage offers .​
At the​ moment,​ the​ average standard variable rate is​ around 6.3% .​
Looking at​ the​ mortgage best buy charts,​ rates of​ less than 5% can be found .​
on​ a​ £150,​000 repayment mortgage over 25 years at​ a​ rate of​ 6.3%,​ monthly repayments would be £994.15 .​
on​ the​ same mortgage at​ a​ rate of​ 5%,​ repayments would be £876.89 .​
This is​ a​ difference of​ £117.26 a​ month – a​ huge £1,​407.12 over a​ year.
There are many other things to​ consider when choosing your mortgage such as​ term,​ rate type,​ deposit,​ insurances and fees .​
Read more about these in​ out mortgages things to​ consider guide.

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