Over the past 24 months mortgage rates have reduced to their lowest on record. More recently Mortgage Lenders have increased rates slightly however, it is thought that a third of borrowers do not know what interest rate they are paying. They could be paying well over the odds and could be on the lenders variable rate which bears no resemblance to current low rates that are available.
So, is now a good time to review your mortgage interest rate?
In terms of deals on offer then the short answer is yes – you should definitely look into it. There are however several pitfalls you need to look out for.
There are tempting 2 and 5 year fixed rates deals on offer however, generally it is the case that the lower the rate, the higher the lender arrangement fee.
These are considerations for borrowers who are about to roll off their existing deal and then pay the lenders standard variable rate.
The 5 year fixed rate deal is gaining in popularity over the more conventional 2 year fixed rate with borrowers having concerns over the prospect of rates moving onto an upward trajectory.
So why is it good to involve an Independent Mortgage Adviser?
We continually hear stories of house buyers and re-mortgage clients visiting banks and building societies only to be advised that they have to wait a few weeks before they can undertake a mortgage interview or indeed, are declined after spending numerous hours running through a mortgage application.
Using an adviser takes the pain away and they will select the most suitable mortgage from the thousands on offer with the minimum amount of fuss.
An adviser will guide their clients through the whole process and transact much of the paperwork on their behalf.
Importantly an adviser will revisit the client before their deal expires to reassess their needs and reappraise the marketplace to find the best deal ongoing terms.