Switching your mortgage could be the best decision that you make. It can possibly help you save a large amount of money if done correctly. If you are not sure how to go about this, here are a few tips of what to look for and what to think about.
Think about how much you could save. In order for you to save, you need to make sure that you are shopping around for the best deal. When shopping around, it is similar to what you should have done for your mortgage. Talk to different mortgage brokers and banks. See what they have to say about switching and is it worth it for you?
What type of mortgage do you have? An annuity mortgage, interest only mortgage, pension mortgage, or endowment mortgage? This can also make a difference when thinking of switching. You will also want to know what your current interest rate is. Get in touch with your current bank to find out what your rate is if you are not sure what it is.
If you have a standard variable rate, which is the rate you will be charged when your fixed interest rate ends, then switching your mortgage may be able to save you a great deal. Lenders also have to let you know sixty days before your fixed rate ends as well as tell you about the new rate you will have. If there are other options available, they also need to let you know about those. Your bank also will let you know every year if there are cheaper interest rates available. If you are on a tracker or fixed rate mortgage, switching your mortgage may not be able to save you enough to really be a benefit.
Another thing to watch for when switching your mortgage is the possible fees that may come along with it. Are these fees going to cost you more than you would save because if they are, you are probably better off staying with your current mortgage.
Also keep in mind that switching from one your current bank to another will be more work than switching within your same bank. This does not mean that you shouldn’t shop around and look into different banks because the amount you can save may be more than worth the time. All of this depends on you and what the savings mean to you and the time that you are willing to put into the switch.
This article was written by Nicole, an intern at Irish Mortgage Brokers and Yes.ie from the USA