MS Broke in Bristol saved £816 last time she re-mortgaged
It’s been a tough few months for my finances what with the Coronavirus pandemic forcing the UK (and most of the world) into lockdown and my campervan deciding that it was the perfect time for a new gearbox and clutch!
But when the going gets tough, I like to get going and sit down with a cup of tea and do a direct debit detox! Not only have I cancelled the odd subscription, but I’ve also double checked that I’m not paying too much on the essentials like car and home insurance and I switched my bank account for a £100 sweetener. If you’re savvy you’ve probably already done the same, but how often do you check that you’re not paying too much on your mortgage?
Considering It’s probably your biggest monthly expense, it should be the first thing you look at as it might save you thousands of pounds a year. Last time I re-mortgaged I saved £34 a month, which adds up to £816 over a two-year period.
You can use a remortgage calculator and I’ve heard of cases where people save thousands of pounds a month by talking to a local mortgage broker who will give you free advice – not just on securing a better rate but also consolidating other debts too.
If you have taken out a fixed rate mortgage where you pay the same amount every month and the interest rate stays the same, once the initial term has ended you’ll fall into a Standard Variable Rate (SVR) where you could end up paying a higher interest rate than before. This is usually the time to consider re-mortgaging in order to get a better deal.
Other reasons you might consider re-mortgaging are if you want to move from interest only to repayment, if you would like to make overpayments and your current deal doesn’t allow it or if you want to borrow more money for home improvements.