Today is the first blog in our new series ‘Broker Says’. In this blog our senior mortgage and protection advisor Jade Pinkerton discusses the topic “Are you unsure what to do with your mortgage?”. Millions of people across the country are mortgage owners and that means that chances are you will need to re-evaluate your mortgage deal every two to five years. Mortgages are an organic thing that changes over time. Ideally you would want you mortgage to reduce in size as you pay it down however you can do a great many different things to your mortgage deal, to make it benefit your wants and needs at the time.
That is why enlisting the help of a mortgage advisor is essential when getting a mortgage. Some people will get a mortgage through a bank, because they assume it is the most simple route forward. They will then sit on their loan, perhaps assuming that their lender has everything in control and with their best interest at heart. And some people reading this post will know that you should probably re-evaluate your mortgage deal to make sure that you aren’t overpaying, but you are unsure what to do with your mortgage.
Jade Pinkerton – Senior Mortgage and Protection Advisor at Oportfolio Mortgages
The topic today is ….Are you unsure what to do with your mortgage? In fact, this topic isn’t just for today. It’s something that is extremely common in the mortgage world. People get a mortgage but are unsure or not confident enough to speak to their bank or to a mortgage professional to re-evaluate their current deal. There can be many reasons that people are reluctant to tackle their mortgage.
- Perhaps they don’t want to commit to a new deal in case it’s the wrong one?
- Maybe they are concerned about rates rising and potentially decreasing again, especially after the whirlwind last three months of 2022.
- Or perhaps don’t want to tie yourself into the rates at the moment as they seem considerably higher than when you mortgaged 2-5 years ago?
All of these are very valid and reasonable concerns. A mortgage is often the biggest financial investment a person will make, unless you are someone like Elon Musk pumping billions in to rockets every year! But you really needn’t fear, getting in touch with us at Oportfolio is simple and stress free. We have the answer AND ADVICE.
As we have already mentioned, a main concern for borrowers at the moment are rate increases, changes, and the risk of being fixed into a deal that might not be competitive in a years time. Our solution and what we can offer? COMPETITIVE RATES WITH NO TIE IN PENALTIES. At Oportfolio Mortgages, we are a whole of market broker with access to over 90 different lenders and thousands of products.
As a way of keeping customers, lenders will often add a tie in clause to their deal that means you may need to pay the bank to come away from the deal. This can be a percentage of the balance of the loan, so in some cases it can be quite costly. The best way round this is by exploring the competitive rates we have access to that have no tie in penalties.
Real Life Example Of How We Can Help
One client that I spoke to this week knew he was coming off his current rate of 1.65%, but he didn’t want to tie himself into the next best fixed rate option as it was in the region of 5%! And now rates are higher he is considering selling this property, which is a buy-to-let, as the income he receives each month will no longer be as profitable.
He estimated that he may choose to sell in 6 months and it will take several months to go through. He didn’t want to commit to another rate due to the tie in charges and early repayment fees charged by the lender if he sold. So he was intending to go onto the lenders standard variable rate (SVR) at 6.5% for a few months and then sell, as there is no exit penalty.
Once I found out that he wanted to sell, and he wasn’t averse to tracker options, I amended my recommendation to a rate that didn’t have tie in penalties. And is currently 4.4% so saved him a substantial amount of money. As you can probably understand he was relieved to say the least! And said “I didn’t know you could do that.”
And that’s what we see and hear time and time again from people unsure what to do with their mortgages. We at Oportfolio have access to more rates, lenders, and products than people even know exist. It just goes to show that clients need advice more than ever and it really is important to get advice tailored to your needs and circumstances. Don’t just sit in silence with your current mortgage lender, give us a call at Oportfolio mortgages and see how we can help you get the best out of your mortgage in 2023.