As mortgage rates are at their lowest since 2009, more people are taking advantage and swapping to new fixed rate products and saving money. So, how do you swap to a new deal?
Two years ago, the lowest interest rate on a two year fixed rate deal for 90% Loan to Value was about 3.5%. It is now possible to find a fixed rate deal at 2%. Even if you owe 95% of the property value, there are some really low rate deals available.
Obtaining a low fixed rate deal can help you to save thousands in mortgage payments. This is good news for those who are struggling with current monthly payments, or if you want to overpay on your mortgage to reduce both the amount outstanding and the term, although you should check with your lender first.
Initially, you should check your amount outstanding, the monthly repayment and the current interest rate. You may be paying the Standard Variable Rate, which means you have a good chance of finding a lower deal. Next, check what your current deal is, whether it is a tracker, fixed rate or variable loan.
Once you know these details, you can check whether you are tied into a deal for any length of time, and any penalty charges for swapping. You will also need to know your current LTV rate and how many years your current mortgage term has.
As there are so many deals available, it is often easier to approach a CeMAP qualified mortgage adviser, who will look at the lenders criteria and locate the most suitable deal.
