Your mortgage is the biggest loan you have, and so making sure you get the best deal is imperative. It is easy to become complacent with what you have, but by being a bit more financially savvy, you can secure great deals and benefit from secure financial decisions.
As you may be aware, interest rates are at an all-time low. It is possible to fix your mortgage on a two-year fixed rate for as low as 1% in places like the UK. However, many experts anticipate a rise in interest rates, especially after the US Presidential election results. Money Saving Expert Martin Lewis says, “Donald Trump’s success has witnessed a rise in the City’s long-term interest rates which the price of fixed-rate mortgages are based on. Thus, there is a possibility we’ll observe fixed costs commence to go up. Although this is not even close to certain, rates are extremely low-cost, even if they did fall, my prediction is the increase would be limited – however, if they go the other direction, the cost could be massive. Therefore, if you need safety, checking now is good.”
The first thing you should do is some online research. There are so many great resources online that you can look at and explore. Essentially, it is important to be as clued up as possible. . Payday loan provider Wonga ZA recently released a blog post about how vital it is to be what they call ‘financially literate.’ They say that you should know about your credit report and your financial options before making any big decision, such as applying for a loan. And we tend to agree! By having the knowledge of what’s on the market and what your choices are, you can be wiser when it comes to making a decision about whether to re-mortgage or not.
Timing is everything
Apparently, if you’re already on a fixed deal, you’ll pay hefty fees to get out of it, and so this won’t be an option. You’ll want to be coming to the end of any fixed term. If you’re not in a fixed term, you’ll want to prepare in other ways. As Wonga’s money academy says, you’ll want to check out your credit score and improve this in any way you can to build your character up as a trustworthy and reliable borrower. You’ll also want to get your accounts in order. You’ll likely need three months’ worth of bank statements. Gather your savings together if you haven’t done so already, and time your application so that your accounts clearly show you are an organized and savvy borrower.
Many free consultation services are available if you are looking to re-mortgage, but also many mortgage brokers offer free advice which is unbiased and helpful. This can come in handy if you’re struggling to make sense of the mortgage world! Don’t be afraid to seek advice when you need it.