Tips on how to prepare to switch mortgage deals

January 16, 2016 by Brendan

Advice & Tips

Switching to a new, lower mortgage deal is a priority for many borrowers this year, before the Bank of England increases the base rate.

Although experts believe that the base rate will increase gradually, it will still make a huge difference to monthly mortgage payments. A fixed rate deal could potentially save large amounts of money during a year. However, the mortgage market has changed over the last couple of years, and obtaining a mortgage is much harder than it was previously.

When you attend an interview with a lender to apply for a new low rate deal, go along with as much information as possible. Take along all details of your income, including pay slips and P60’s. Make sure you have all details of current expenditure, so that the lender can calculate affordability.

Your annual mortgage statement will provide details of how long you have left on your mortgage and the amount outstanding. If you are swapping to another deal before the end of the fixed rate period, check whether a redemption penalty will apply.

So that you can be sure of getting the best possible product and one which is suitable for your particular circumstances, approach a mortgage adviser who has passed their CeMAP training. They have knowledge of the products which are available and the likelihood of you being accepted by the lender.

Take into consideration costs like the arrangement fee and any valuation and legal costs which you have to pay. Calculate the costs over the fixed period as you may be better off with a slightly higher interest rate and lower fees.