The Importance of Getting your Mortgage Reviewed in Nottingham

Mortgage review advice in Nottingham

A mortgage will be one of the biggest financial commitments of your life and that’s why it’s always important to check-up on it. When we say “check-up” on your mortgage, we mean that you should re-evaluate your deal to see if you can obtain anything better. If you never have a look over your mortgage, it’s possible that you may be overpaying. Most of the time, homeowners are actually overpaying their mortgage and they could be on a better rate.

What is a mortgage review?

A mortgage review is exactly what it sounds like. When you want a mortgage review, you should approach your lender, building society or Mortgage Broker in Hull and tell them that you want to take a look over your mortgage and see if you can get a better deal. This process will work in a similar way to how their mortgage application process works.

They will want to get a full financial overview of your current situation. This will include your income (and your partner’s if you live together), monthly bank statements and your credit score. Also, they will look at whether you’ve kept up-to-date with your mortgage payments throughout your term or not. They will take a lot of different factors into consideration before giving you an answer.

Your credit score will play a big factor in any financial situation. For example, you may have been meeting your mortgage payments but have not been meeting overpayments; if this is the case, your credit score may be lowered which could show partial unreliability.

Once they have evaluated your financial circumstances, they will give you some feedback and let you know if you can access another deal through a product transfer or Remortgage. If you can’t switch products, you may need a couple of years to prove that you are reliable. This will particularly apply to people who have suffered from bad credit in the past, lenders may just need to see a little more before they offer you a better rate.

Why is a mortgage review important?

As a Mortgage Broker in Nottingham, we always recommend that you carry out a mortgage review at least two years into your mortgage term or when your financial situation changes. You may be overpaying your mortgage without even knowing.

If you end up securing a better deal, you could potentially save yourself thousands of pounds down the line. Also, if you’ve not realised that your term has ended and you’ve ended up dropping onto your lender’s standard variable rate (SVR), you could be losing out on money. A lender’s SVR is usually high, perhaps much higher than your previous rate!

Standard variable rate (SVR)

If you end up losing track of your mortgage and the length of its term, you may end up slipping onto your lender’s SVR. This error is commonly made by first time buyers in Nottingham. A fixed-rate product is usually much better than a lender’s SVR. In Nottingham, we’ve sometimes seen that a lender’s SVR is their highest rate.

If you are on a fixed-rate product, you won’t be able to shop around for deals and switch over that easily. It’s much easier to switch deals whilst you are on your lender’s SVR; this is the only real positive to being on their SVR.

You are under no obligation to stick with your current lender and can go elsewhere if you want to. As a Mortgage Broker in Nottingham, we always advise that you get advice before making any big decisions. If you can access a better rate, look around for deals or approach a Mortgage Broker in Nottingham for help.

We have access to thousands of competitive mortgage deals – some exclusive to our broker! We can give you further insights into your current mortgage situation and let you know what sort of deals that we can match you with. If you choose to stick with us after we’ve found you a deal, that’s up to you to decide.

Equity Mortgage Advice in Nottingham

Lots of equity in your home

Ever since the credit crunch in 2008, we have seen a significant increase in housing prices in Nottingham. The increase in housing prices also increased the amount of equity within a home. This means that if you live in a house with lots of equity in it, you could be able to access better mortgage rates.

Mortgage rates are based on loan-to-value ratios, therefore, the greater amount of equity in your home, the lower your interest rate will be.

There is also another route you can take, you could raise money for capital if that’s something that you’re interested in.

Little equity in your home

If you are a first time buyer in Nottingham, a relatively new homeowner or your property has yet to increase in value, there may not be a great amount of equity in your home. Don’t worry though, there may still be other ways to save money on your mortgage payments. A Mortgage Broker in Nottingham will tell you exactly how to do so.

If you’ve been keeping up-to-date with all of your mortgage payments, you will always give a good indication to your lender that you are reliable.

The True Cost of a Mortgage Deal

The deal with the lowest rate isn’t always the best deal; low-interest-rate deals often come with extortionate arrangement fees. This is why it’s always better to do your research before rushing into a deal just because it has a low rate.

You speak to a Mortgage Advisor in Nottingham before making any decisions. Our team of advisors are here to offer all the advice that you need when looking at getting your mortgage reviewed. You’d be turning down a free mortgage consultation if you didn’t get in touch with Nottinghammoneyman.

Date Last Edited: November 21, 2023