Risking sounding like a broken record, I will tell you once more that reviewing your mortgage deal, especially if you are not on a fix term deal, can actually save you a lot of money. Your mortgage is, in most cases, the biggest loan you will ever take and as such it needs to be kept at good shape.
Since 2008 interest rates have been kept at all time low and have not been raised for a long time now. This means that many home owners have kept their mortgage at a variable rate status as it is deemed to be cheaper than a fixed rate deal. However, years of low interest rates have affected the market greatly and as a result many of the fixed rate mortgage deals are very attractive when compared to variable rate products.
Whatever your circumstances, reviewing your mortgage periodically with a trusted advisor is a wise move. Here is how it can help you in different life circumstances:
- Young family: Typically you will be looking at buying your first home or upgrading to a bigger home to accommodate your growing family. This is a time in life where financials demands are high including a bigger mortgage, nursery fees and overall increased spend. You will therefore need to understand what monthly payment you can afford to ensure you are looking for the right homes.
- A change in circumstances: Most people go through change throughout life but sometimes this can create difficult financial circumstances. Whether you have lost your job, going through a divorce or simply wanting to open your own business, you will need to review your mortgage payment to ensure you can still afford them.
- Downsizing: After years of paying a large mortgage for a big, family home you are now looking to downsize to a smaller home. You will need to consider many things such as location, commute and proximity to your grandchildren but also ensuring you make the most out of the surplus money left over.
- Buying property for investment: Despite the change in tax implications real estate is still considered a good investment. If you have surplus income it is sometimes logical to consider investing in another property. Investment requires careful consideration in terms of short term and on-going costs to make sure you get a good yield affordably.
In all of these examples your mortgage advisor can help way out the situation and help you determine the right mortgage rate you can afford. To see how a local family had benefited greatly from a long term review have a read of our latest case study here.
I hope this as given you something positive to consider. Should you need some advice I am always happy to speak with you so get in touch.