There are a few times every year when a letter from one of your insurance providers will drop through your door to notify you that your fixed mortgage deal is ending and notifying you of your new premium for the coming year.
The chances that these letters will encourage you to shop around for a better deal are about as likely as your new premium being lower than the previous year’s.
If you’re paying your premiums by direct debit then as with many financial commitments based on standing payment arrangements, providers often count on the fact that there’s an appeal in sticking with them rather than researching the market for a better price.
In fact, there’s research to show that in most cases you’ll get a saving if you do shop around for a better deal.
Mortgages are no different. But the latest figures from UK Finance mortgage trends suggest a decline in remortgages that involve no additional borrowing could point to a rise in the popularity of product transfers that see customers sticking with their existing lender.
There could be all sorts of reasons why people might do that. Moving lender now involves a lot more effort on the part of borrowers in order to meet much stricter lending criteria and affordability tests. That often means more paperwork and more time.
We’re also much busier as a society these days and life moves at a fairly frantic pace – especially if you’re holding down a demanding job, raising a family and trying to make quality time for yourself.
And in some cases, the decision to stay with a lender could be entirely pragmatic – for example, maybe you’re being offered a product that, if not cheaper, is close enough to the cheapest alternative that the saving doesn’t justify the effort you think it will take to switch lenders.
As a general rule, switching providers at the end of a fixed-term deal is more likely to save you money because you’re probably going to be choosing from a wider selection of products and offers.
Changing mortgage providers doesn’t need to be as stressful as people may have been led to believe. Although there’s no short cut to getting the right paperwork together, working with a professional mortgage broker can cut the effort you need to put in and ensure you’re getting the full benefit of all the options that might be available to you.
A qualified and expert mortgage broker will have access to products you’ll never find by yourself online or on the High Street – all from trusted providers. That means you’ll get the deal that is best suited to your immediate and future needs.
A broker will also handle the process of filling in the application on your behalf and managing it through the approvals system.
More than that, because a professional broker will have a relationship with the lenders, knows their criteria and will understand your finances, they should be recommending a mortgage that not only suits your needs but is likely to be approved.
Even if you think staying with your existing lender is the right choice for you, it still makes sense to speak to a professional so you get the benefit of their experience and extensive knowledge – it could be there’s a different solution that works better for you.
If your deal is coming to an end and you’re unsure of the right steps to take, come and talk to us – we’d love to help.
Want to find out about your mortgage options? Take a look at our short guide to remortgaging.
To find out more about our friendly and professional mortgage service, fees and what we can do to help make sure you’re not paying over the odds for your mortgage, why not visit www.oportfolio.co.uk or give us a call on 020 7371 5063.
Oportfolio Limited is an appointed representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority
Your property may be repossessed if you do not keep up repayments on your mortgage.
Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295.