Is Now The Time To Switch Mortgage in Aberdeen?
/0 Comments/in Remortgaging /by Neil CarruthersIf your mortgage is currently on your lenders’ standard variable rate, you could be potentially paying over the odds on your mortgage. A report from HSBC stated if those on the standard variable rate switched their mortgage, they could be saving up to £4,000 each per year [1].
With the Bank of England base rate currently at 0.1% [2], now could be a good time to lock in a new mortgage rate.
Mortgage rates are currently low, but it does look like they could be increasing. In fact figures published by the latest Moneyfacts UK Mortgage Trends Treasury Report show that some mortgage rates have increased for the third consecutive month [3].
Homeowners looking to remortgage should speak to a mortgage broker who will be able to provide information and advice on the best options available for individual circumstances.
What should you do with your current mortgage?
First, check out your current financial situation:
- When your rate is due to expire (it may already have expired).
- How much you are paying each month for your mortgage.
- Your current mortgage rate.
Many people are not aware that they have been automatically transferred onto their lenders’ standard variable rate but this can mean that you are paying more than you need to.
What we do
Aberdeen Mortgage Company have access to competitive remortgage deals that includes exclusive deals not available direct from lenders on the high street.
Once you become a client of ours, we’ll contact you 5 months before your mortgage rate expires to ensure you don’t end up paying more than you should on your mortgage.
For more information on switching your mortgage, request a callback to speak to one of our expert mortgage advisers or call 01224 316200
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Source:
[1] HSBC, Homeowners paying thousands a year too much by sticking with a standard variable rate mortgage, 2017
[2] Bank of England, November 2020, bankofengland.co.uk
[3] Mortgage Rates Rise for Third Consecutive Month https://moneyfacts.co.uk/news/mortgages/mortgage-rates-rise-for-third-consecutive-month/
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Your home may be repossessed if you do not keep up repayments on your mortgage.
This firm charges a fee of up to £395 for mortgage advice. The amount of fee will depend on your circumstances and will be discussed and agreed with you at the earliest opportunity.
Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited, which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. The Financial Conduct Authority does not regulate some forms of Buy to Let. Lifetime Finance Group Limited.
Could You Lower Your Mortgage Payments in Time For Christmas?
/in Remortgaging /by Neil CarruthersWith the summer months long gone and the festive month(s) nearing, now is a good time to look at your mortgage.
If you haven’t looked at your mortgage for a while, you could be paying more than you should on your mortgage. This could because you have been transferred over to your lender’s standard variable rate (SVR). A lender normally transfers you onto their standard variable rate when your fixed rate comes to an end. Allowing your mortgage to revert to the SVR can cost you dearly, as lenders typically hold their SVR at a significantly higher rate. Recent research from Which? states that UK homeowners are spending £4,000 too much on their mortgages each year [1].
Aberdeen Mortgage Company can review your current mortgage rate to ensure your monthly mortgage payments remain competitive and that you are taking full advantage of current low rates. The aim being to find you a new deal that could potentially give you that extra bit of savings every month – just in time for sleigh bells ringing.
Reviewing your mortgage is generally a simpler process than your initial mortgage, beginning with a quick phone call to start the process and confirm details.
You have nothing to lose (except maybe a few pounds off your mortgage) by enquiring today. For a quick chat to get started, call 01224 316200 or fill in our online enquiry form.
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Source:
Homeowners spending £4,000 too much on their mortgages each year – https://www.which.co.uk/news/2018/10/homeowners-spending-4000-too-much-on-their-mortgages-each-year/ – Which? March 2018
Your property may be repossessed if you do not keep up repayments on your mortgage.
This firm usually charges a fee of up to £395 for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.
Please note if we recommend a Product Transfer with your existing lender then no mortgage advice fee will be payable, we receive commission from the provider.
Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority.
What does the Base Rate increase mean for your mortgage?
/in Remortgaging /by Neil CarruthersToday, the Bank of England has increased the base rate from 0.5% to 0.75%. This is only the second time in a decade they have increased the rates and it is the highest level since March 2009.
What does an interest rate rise mean for your mortgage?
- More than 3.5 million residential mortgages are on a variable or tracker rate.
- The average standard variable rate mortgage is 4.72%.
- On a £150,000 variable mortgage, a rise to 0.75% is likely to increase the annual cost by £224.
Sources: BBC, UK Finance, Moneyfacts, Nationwide Building Society, August 2018
Should I switch my mortgage?
There are a number of factors that affect whether you should switch your mortgage.
If you are currently on a standard variable rate or tracker rate, you should consider looking to switch to a fixed-rate mortgage. A fixed-rate mortgage means you know your exact monthly mortgage payment without the worry of whether the interest rate might increase.
If you are currently on a fixed-rate mortgage, we can review this mortgage up to 3 months prior to expiry. It can be with your current mortgage lender or with a new lender – depending on what best suits your personal needs.
Are you paying too much on your mortgage every month? Speak to our expert advisers.
What would you do with the money you save? You could pay your mortgage off quicker, a home improvement, or book a last-minute holiday.
With expert knowledge, we often have access to exclusive deals and lenders that are not available on the high street. We scour our panel whilst considering your personal circumstances and presenting the most suitable solution for you. Aberdeen Mortgage Company has access to a comprehensive lender panel and it is our duty to ensure that we provide a competitive deal for you.
Call 01224 316200 or fill in our online enquiry form.
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Your property may be repossessed if you do not keep up repayments on your mortgage.
This firm charges a fee of up to £395 for mortgage advice. The amount of fee will depend on your circumstances and will be discussed and agreed with you at the earliest opportunity.
Aberdeen Mortgage Company Ltd is an Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. The Financial Conduct Authority does not regulate some forms of Buy to Let.
The Bank of England Interest Rate on the Rise?
/in Remortgaging /by Neil CarruthersWhat would an increase in interest rate mean for your mortgage?
The Bank of England has announced that it is keeping interest rates at 0.5% but has also hinted at increasing the base rate soon [1].
They did say rates would need to rise “earlier” and by a “somewhat greater extend” than they thought at their last review in November.
The BBC states that around 8.1 million UK households have a mortgage, and of those almost half are on either a standard variable rate or a tracker rate [2].
Those on a standard variable rate or a tracker rate would be most affected by a rate increase, as interest rates on those types of mortgages would likely match any increase by the Bank of England.
Economists think the next rate rise could come as soon as this May. [3]
Save & Secure a Low Rate
“If you haven’t reviewed your mortgage recently and not taken advantage of the record-low fixed rates, you may want to consider it now.” says Aberdeen Mortgage Company Managing Director Scott Kennedy. “Securing a fixed rate deal could be your answer to avoid the impending increase. It all depends on your circumstances and whether a switch is right for you at this moment.”
Aberdeen Mortgage Company can search for remortgage deals on your behalf. We often have access to exclusive deals and lenders that aren’t available on the high street. We compare, so that you can save.
Speak to our expert mortgage advisers about switching mortgage.
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This firm does not charge a broker fee.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited, which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. The Financial Conduct Authority does not regulate some forms of Buy to Let. Lifetime Finance Group Limited.
[1] This is Money, Feb 2018, http://www.thisismoney.co.uk/money/news/article-5363197/More-quarter-indebted-Britons-fear-rate-rise.html[2] BBC, Feb 2018, http://www.bbc.co.uk/news/business-42986729
[3] Money Marketing, Feb 2018, https://www.moneymarketing.co.uk/bank-england-holds-rates-hints-increase-soon/
3 Times When You Should Switch Your Mortgage
/in Remortgaging /by Neil CarruthersRemortgaging is all about switching your mortgage without the hassle of moving to a new house. There are key times to do this. You don’t have to stay with the same lender for the duration of your mortgage, but don’t just switch mortgage to free up extra cash for holidays. Instead make an informed decision where the advantage is in your corner. Such as the following…
- When rates are low
The Bank of England base rate remains at a record low 0.25%, the lowest in the bank’s 323-year history.1
Lenders are already competing with each other with attractive mortgage deals. If you get your timing right, you could secure onto a low rate for a remortgage on your current property.
- When you have equity
How much of your home have you paid for? The ratio known as the “Loan to Value” ratio (LTV) expresses how much of your property is owed to your the lender (the loan) compared to the total value of the property. The proportion not owed to the lender is known as the equity. The lower LTV and the higher your equity, then the cheaper the mortgage deals available to you are likely to be, compared with those aimed at those with a higher loan to value.
- When your fixed rate is about to expire
If you have an introductory deal on your current mortgage, then find out when it is coming to an end. If your lender is moving you to a standard variable rate (SVR), then you’ll want to consider seeing what other mortgage deals may be available if the commencing SVR is more than you’re paying right now.
Our expert mortgage advisers will search a comprehensive range of mortgage from across the market to find the most suitable solution for you.
Check out our infographic – Our 5 Step Guide to Reviewing Your Mortgage
With expert knowledge, we have access to exclusive deals that are not available direct from lenders on the high street. Aberdeen Mortgage Company scour our panel whilst considering your personal circumstances when looking for the most suitable solution for you.
Speak to our expert mortgage advisers at Aberdeen Mortgage Company
Source:
- Bank of England cuts base rate to 0.25% – what it means for you, MoneySavingExpert, http://www.moneysavingexpert.com/news/banking/2016/08/bank-of-england-august-base-rate-decision
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Your home may be repossessed if you do not keep up repayments on your mortgage.
We do not charge a fee for our services, we receive commission from the lender.
Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited, which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. The Financial Conduct Authority does not regulate some forms of Buy to Let. Lifetime Finance Group Limited.