Save money – Check if your mortgage is on variable standard rate.
Variable standard rate is a higher percentage rate than the other mortgage products offered by your lender. The VSR will rise and fall as the Bank of England alters the base rate. During October 2018 the BoE rate is 0.75%, which, whilst still low is a second small rise during the last few months.
So NOW is the time to think about which is the best mortgage deal for your family.
Mortgage lenders will always charge more than the Bank of England base rate. If you have fixed your mortgage rate for a period and it is coming to the end then your Mortgage society will move you onto the variable standard rate when your fixed rate ends and your mortgage will cost you more. The mortgage lender will write to you before this happens. This is the time to contact Alicia Baker Consultancy for the best deal.
There will be several options on offer.
You will be able to fix your mortgage rate at a lower cost than the variable standard rate. The mortgage lending rate will be slightly different depending on the period you choose. Longer periods will cost a little more but give you financial stability for a longer period. Typically, you can choose between 2 – 10 years. The benefit of the fixed rate mortgage is that you will know precisely what your financial commitments are for your mortgage during this period which will help your budgeting and your piece of mind!
It is very important to have full information on how these deals relate to your personal financial circumstances. If you enter a deal and then leave it early there will be penalties. This is why it is so very important to get sound impartial financial advice.
For example. Even on fixed rate mortgages many lenders offer the ability to make overpayments up to 10%. By selecting a lower payment than you can comfortably afford you can then save the money in an interest-bearing account and once a year make a sizeable 10% overpayment. This will allow you to take advantage of a shorter fixed rate term and get a lower rate. If you overpay by 10% a year then after five years you will have paid off a considerable amount of capital and it will be time to fix the rate again.
Advice like this is essential to making the most of your money and that is what Alicia Baker Consultancy specialise in.
You may prefer not to fix the rate in which case there will be a different type of mortgage product suitable for you. I can advise on the different types of repayment mortgages available or interest only mortgages available. For first time buyers, often shared ownership mortgages and 95% mortgages are a good start. If you are self-employed or looking to invest in a buy to let property I can advise you which type of mortgage will suit you the best. All of these mortgages have advantages and disadvantages and you need very clear financial advice on the best mortgage deal for you and your family.
What will it cost?
Financial products involve a commission and I may need to charge a fee for the time I spend on your case. This will typically be £300 and is payable upon an application being processed.
Please call me for a free no-obligation discussion. I will advise you how to get the best possible mortgage deal for your personal circumstances.
Alicia Baker Consultancy
To find out about any of my financial services. Please contact me for a free no-obligation discussion. I can find you the most appropriate mortgages, home insurance and personal insurances, such as life and critical illness cover to protect you and your family.
Alicia Baker Consultancy is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.
Your home may be repossessed if you do not keep up repayments on your mortgage. As with all insurance policies, conditions and exclusions will apply.