The importance of a mortgage review and how brokers can help

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A mortgage review by an experienced and qualified broker can help you reassess whether your current product still meets your financial goals. In this blog, we’ll look at the way life changes can affect your needs and the benefits of reviewing your current mortgage and more.

How life changes can impact your mortgage needs

Life doesn’t stand still. And as it changes, so will your mortgage needs. The mortgage you took out because it was the most suitable for you at the application stage may not remain the most fitting product for you down the line.

Your current financial circumstances play a big part in what type of mortgage is going to be most suitable for you, and of course, these circumstances can change. Whether that’s a positive or not, however they alter, your mortgage needs to be suitable for your current situation.

Then there are your own personal set of circumstances – whether you’re single, about to move in with your partner, upsizing your property, separating from your partner, or starting a family. Your current position will affect your mortgage requirements. We’ll look at this in more detail in a moment.

The benefits of reviewing your mortgage regularly with a broker

There are many potential benefits. They include:

  • Saving you money.If you regularly review your mortgage, you may well find there are mortgage deals or savings you can take advantage of. You may be able to reduce your monthly payments. An experienced broker will be able to help you find the most suitable products for your current situation.
  • Interest rate savings. Because interest rates fluctuate over time, you may find you can switch to a lower rate. Even the smallest of reductions in your interest rate can have a huge impact over the course of your mortgage term – you could save thousands.
  • Avoid falling onto your lender’s Standard Variable Rate (SVR). This can be very costly. Keeping a watchful eye on your mortgage and switching at the right moment can be financially rewarding.
  • Faster debt reduction. You may be able to reduce your mortgage term.
  • Release equity in your home. If the value in your property has increased, you may have built up enough equity to improve your home, consolidate your debts or help a relation get their foot on the property ladder.
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With lenders often reducing their rates and fees, a mortgage broker can potentially save you time and energy when you remortgage.

The role of mortgage brokers in refinancing and remortgaging

With lenders often reducing their rates and fees, a mortgage broker can potentially save you time and energy when you remortgage, just by knowing the market and what’s new. A whole of market broker will be able to access the broadest spectrum of deals and lenders – some of which you otherwise wouldn’t have access to. They’ll be able to easily compare rates and terms and conditions. And once you’ve narrowed down your options, they’ll act as an intermediary between you and the relevant lenders. On top of this, they’ll be able to offer you advice tailored to you, your current circumstances and goals.

Assessing the impact of interest rate changes

The impact interest rate changes have on your mortgage will be determined by the type of mortgage you have and when your deal comes to an end.

If your mortgage is on a variable rate tied to the Bank of England’s base rate, fluctuations can directly affect your monthly repayments, potentially increasing or decreasing the amount you pay.

Tracker mortgages ‘track’ an external base rate – most often the Bank of England’s – so your monthly repayments will fluctuate accordingly.

If you’re on a fixed rate, you won’t notice any difference until your deal ends.

When to consider a mortgage review

You’ll probably want to review your mortgage if:

  • Your job changes. A new career, promotion, demotion or made redundant, for example.
  • You go through family changes. Move in with your partner, get married, start a family, and so on.
  • Your financial goals change. You want to upsize, downsize, save for your child’s education, retire sooner, and so on.

As your circumstances change, you will want to be sure you are maximising financial opportunities. Contact our mortgage brokers for helpful advice.

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