The Importance Of Having Your Mortgage Reviewed in Sheffield

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What is a mortgage review?

Why is a mortgage review important?

Standard variable rate (SVR)

Mortgage review advice in Sheffield

One of the biggest financial commitments in your life will be a mortgage, therefore, from the moment that you take one out, you must be aware of the things that come with getting one.

People tend to think that once you get a mortgage, you can forget about it and just keep paying it off one month at a time, however, this is not the case. When you take out a mortgage, you will be fixing yourself into a term and your term could be between 2 and 10 years (It’s usually 2-3 years).

Once this term is over, you will fall straight onto your lender’s standard variable rate of interest and it’s likely that this rate will be higher than your current one, therefore your mortgage payments will increase. This is why you should keep on top of your mortgage and make sure that you know when your term ends. It’s also why you should be getting your mortgage reviewed towards the end of every term.

You may be able to access a better rate or deal; you will never know unless you get your mortgage reviewed and find out.

What is a mortgage review in Sheffield?

It’s exactly what it sounds like!

To get one, you need to approach your mortgage broker in Sheffield, lender or building society and let them know that you want to re-evaluate your mortgage product and see whether you can access a better rate. From here, you will start your journey to remortgage in Sheffield.

Overall, the process works just like how your first mortgage process did. You will be asked to provide evidential documents to support your affordability, you are who you say that you are, etc. With this information, they’ll see what sort of products you can access.

Since you’ve been paying off your mortgage and have hopefully been keeping up to date with your payments, your credit score should be well above fair/good and maybe even excellent. A higher credit score can potentially open you up to competitive mortgage products.

Some of our applicants can’t access a better product than they’re already on. In this situation, you can maybe think about renewing your mortgage product with your lender. As a mortgage broker in Sheffield, we only charge for our services past the point where you move forward with your mortgage deal, not whilst searching for one. It’s completely up to you if you continue with us or not.

Why is a mortgage review important?

Going through the mortgage process again can be tiring, but would it be worth it if you ended saving money on your monthly mortgage payments? We think so…

Getting a mortgage review and evaluating your mortgage product could prove financially beneficial further down the line. If you manage to get a better rate, you could end up saving lots of money.

Taking a mortgage review at the end of every mortgage term would prevent you from slipping onto your lender’s standard variable rate of interest (SVR).

Standard variable rate (SVR)

Your lender’s SVR is likely to be much higher than your current rate. This is because lenders SVR is tracked from the Bank of England’s base rate plus their own percentage. If you end up on your lender’s SVR you can choose to either stay on it if you’re happy paying their rates or can take a mortgage review and try to access a better deal.

You can’t switch mortgage products mid-way through your fixed mortgage term without paying an ERC (early repayment charge), so you’ll have to wait until the term finishes. Even though you can’t switch right away, it can still be worth looking at what sort of deals that you can access to get an idea of what you could move onto after your mortgage term is over.

Remember that you are not required to stay with the same lender/remortgage in Sheffield, if you want to shop around elsewhere to find a better deal, you can do so.

Equity Mortgage Advice in Sheffield

Lots of equity in your home

Due to the constant rising in house prices, if you’re lucky enough to have built up equity within your home, you may be able to access more competitive mortgage deals.

Mortgage rates are based on loan to value ratios. By rule of thumb, the more equity you have, the lower the interest rates you will be able to access.  

There may also be some capital raising options available to you. If you are interested in this, please speak with an expert mortgage broker in Sheffield like us.

Little equity in your home

If you haven’t owned a home for long or your property hasn’t increased in value yet, there may still be money-saving options with your current mortgage lender. 

If you’ve kept up to date with your mortgage payments, you may find that you’ll be able to access product transfer deals.

The true cost of a mortgage deal

The mortgage deal that carries the lowest interest rate may not be the best deal. This is because these types of deals often come with high set-up/arrangement fees.

As a mortgage broker in Sheffield, we will consider all the costs that come with getting a mortgage and try to find a deal that saves you money in places that you didn’t think you could.

We will consider your personal and financial situation when it comes to trying to find you the perfect mortgage deal. And, we will also take your credit history, the property being mortgaged, valuation fees and any arrangement fees into account.

Get in touch for Remortgage Advice in Sheffield today.

Date Last Edited: September 15, 2023