I s yo u r b u s i n e ss st i l l t ra d i n g d u r i n g t h e pa n d e m i c ?
20 REASONS WHY YOU SHOULD CONSIDER SWITCHING MORTGAGES RIGHT NOW! In 2020 we’ll have been in business for 20 years! To celebrate, each month we’re sharing 20 top tips about topics that are closest to our heart. Our aim is always to provide you with the best possible information so you can make informed financial decisions. This month we’re talking about how you can save money by switching mortgages. 20 Reasons Why You Should Consider Switching Mortgages RIGHT NOW! When your mortgage comes to an end, many people end up on a Standard Variable Rate (SVR) either because they don’t realise there’s a better option, or because they have become a mortgage prisoner – trapped in their current mortgage due to circumstances that might well be beyond their control. But the situation has changed. In this article, we’ll outline how switching mortgages can save you money, why the process is much easier than you think and how we can help you find a mortgage that best suits your changing circumstances. Mortgage Holidays Before we get into the details about switching mortgages – an important note about mortgage holidays. Lenders are currently offering a 3-month mortgage holiday because of the Coronavirus pandemic. It’s a difficult time right now, especially if you’re coping with a fall in income or the loss of your job. We know for many people this scheme is a lifeline but it’s important to do it right, so it won’t affect your credit rating.
arrangements as they relate to your mortgage lender. Email us on mortgageholidayhelp@downtonandali.co.uk Save Money 1. Avoid going onto a Standard Variable Rate (SVR) - When your mortgage comes to an end, if you do nothing you’ll simply move to your lender’s Standard Variable Rate (SVR). SVRs tend to be much higher than other types of mortgage – in some cases the rate is double. In January 2019 the average SVR was 4.9%, compared to 2.52% for a typical 2-year fixed-rate mortgage. If you don’t switch away from the SVR, over the lifetime of your mortgage you’re likely to end up paying thousands more in interest than you need to. 2. Get advice on the right mortgages - As a member of Openwork Ltd, one of the UK’s largest financial adviser networks, we have access to competitive rates from some of the UK’s best-known lenders. You could approach mortgage lenders directly, and they will advise you about the mortgages they offer, but you won’t necessarily know how their deals to compare to others on the market. In fact, as a member of Openwork, we get access to some mortgages that aren’t available on the high street.
3. Mortgage Prisoners - It’s even more important you act quickly if you’re a mortgage prisoner. Whether you ended up in this situation as a result of negative equity, or because you were adversely affected by the changes in affordability rules in 2014 or because of changes in your circumstances such as a job move or credit issue, there might well be good news for you. If you’re up to date with payments and not looking to borrow additional money, we can help you get a more appropriate assessment with We’d love to help. Contact us for fee free advice your current lender which will make it easier for you to and we’ll talk you through the specifics of the find a mortgage to meet your needs.
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