Mortgages An Important Date

Mortgages - An Important Date
A helpful reminder from your mortgage broker may be just what you​ need to​ save yourself a​ whole lot of​ trouble.
The FSA (Financial Services Authority) is​ very happy with the​ way rules for renewing two or​ three year home loans are working out,​ but mortgage brokers tell a​ different tale and are less impressed,​ saying that borrowers are confused and could be out of​ pocket over the​ system.
When your short-term mortgage is​ coming to​ an​ end it​ would be helpful if​ you​ could rely on​ your lender to​ send you​ a​ reminder .​
Although some do,​ they’re not actually under any obligation to​ send you​ this information .​
They do have to​ inform you​ that the​ interest rate is​ to​ alter,​ with the​ obvious result of​ an​ increase in​ repayments .​
Unless,​ of​ course the​ rate comes down,​ which would probably be as​ likely as​ a​ flying pig? the​ rate they’ll be offering you​ will be their standard variable rate,​ which is​ likely to​ be something like 2.25% higher than the​ rate you’ve been on.
If you​ find yourself in​ the​ position that you​ have actually inadvertently switched to​ SVR,​ you’ll need to​ do something about it​ as​ soon as​ possible .​
For some-one with a​ £100,​000 loan,​ switching from a​ standard variable rate deal can expect to​ save around £1,​000 per annum for each one-percentage point reduction in​ their interest rate.
On average,​ it​ will take four to​ six weeks to​ re-mortgage with an​ alternative lender .​
Make certain that you​ allow at​ least this time to​ have everything in​ hand to​ change lenders in​ plenty of​ time,​ to​ plan an​ easy change-over .​
The FSA recommends that you​ study the​ Key Facts document which you​ will have received at​ the​ start of​ your mortgage .​
This will give you​ the​ date that your loan comes to​ an​ end .​
They recommend that you​ make a​ note of​ it.
Lenders vary,​ some will give you​ about three months notice,​ which is​ fine,​ some will write to​ you​ a​ few weeks before,​ which may mean a​ period on​ the​ higher rate whilst you’re making arrangements .​
Remember,​ some won’t write at​ all.
Whilst it​ makes sense to​ shop around for a​ similar,​ or​ preferably lower,​ interest rate to​ your current one,​ don’t dismiss remortgaging with your present lender out-of-hand .​
There will be a​ saving on​ exit fees,​ often around £300,​ valuation and legal fees if​ you​ stay faithful .​
It’s worth checking on​ what their offer would be.
Competition is​ strong on​ the​ mortgage front .​
All the​ companies would like your custom and you​ may find some will help with the​ costs of​ transferring the​ mortgage by meeting valuation costs and the​ legal costs to​ tempt you​ to​ switch to​ them.
The advantage of​ using a​ mortgage broker is​ that they’ll do all the​ research for you,​ finding the​ best deals and weighing up all the​ different aspects of​ your loan .​
Form filling will be kept to​ an​ absolute minimum too,​ once you’ve given them your details .​
When the​ time comes to​ renew the​ mortgage they’ll seek out the​ best deal again and let you​ know what they’ve come up with.
Get onto the​ internet and search under mortgage brokers to​ get the​ ball rolling.

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