Landlords get your mortgage right in 2019 and save thousands

Look into re-mortgaging up to six months before your initial term ends

When the initial term of a mortgage ends, lenders transfer customers onto their Standard Variable Rate (SVR). This typically has a much higher rate of interest, meaning homeowners can be stung by up to an extra £4,000 a year.

There are already over one million landlords languishing on SVRs and paying over the odds, so make sure you don’t get caught out.

Set a reminder to look into your re-mortgage options with a broker three to six months before your initial term ends. Just one month on your lender’s SVR can cost you hundreds of pounds in extra interest.

Overpay now, save big now, save bigger later

If you can afford higher repayments, and your lender allows you to, overpaying can reduce your overall outstanding balance, meaning you’ll pay less interest overall and reduce the length of the term, making you mortgage free sooner.

Lots of lenders will recalculate the interest immediately so you’ll notice savings straight away. Be sure to check with your lender about how much you can overpay, since there’s usually a limit before a penalty applies. For most fixed-rate deals this is usually up to 10% of the remaining mortgage balance per year.

Switch before another potential rate rise (Brexit)

Another rate rise may well be on the horizon, so it is important to look around for the best deals to guard against an interest rate hike or getting stuck on an SVR.

If you’re on a tracker mortgage, i.e. one that moves in line with the base rate, then switching now to a fixed rate may save you hundreds of pounds.

Help required

If you would like to discuss your mortgage options please do make contact and one of our advisers will be happy to assist.