“£6096 in savings How we remortgaged our property”

Why a mortgage broker could get you a better mortgage deal than by going directly to the lender.

I recently spoke to a client who had been a customer of the Halifax whose current mortgage deal was due to expire. They naturally assumed that being a loyal customer they would be offered a great new deal but were left disappointed when the best Halifax could provide directly hardly saved them any money.

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The customer was recommended to Mashroom Mortgages (our mortgage partners) and was a little apprehensive about using a broker as they thought they would have to pay a fee. Previously they had always gone directly to the lender on the assumption that you would receive the best mortgage rate by avoiding a ‘middle man’.

Our mortgage advice is always free 

I explained that the service they would receive was free, didn’t involve paying any broker fees and that I had access to thousands of different products. In addition, I assured them that they could always compare the deals I sourced for them with the mortgage deals they were offered directly by the lenders.

To the customers’ surprise, I recommended a Halifax mortgage product that was exclusive to brokers which saved them a significant amount of money each month on what they had been offered directly. 

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Saving hundreds of pounds a month on mortgage payments 

Compared to the deal they were currently on they saved £254 a month. Over the two-year fixed-rate period, the savings add up to £6096.

The whole process only took a matter of days to complete and was stress-free for the customer as I took care of all the paperwork. Now they have a new mortgage product in place but are paying significantly less each month. 

Are mortgages being approved during Covid-19? 

Absolutely, you can still get a mortgage up to 90% of the loan to value. 

There are some fantastic mortgage products currently available and customers are able to take advantage of these due to the Bank of England base rate being at its lowest ever rate of only 0.1%.

Will mortgages be harder to get after Covid-19? 

If your circumstances haven’t changed and you have at least a 10% deposit, there is no reason why obtaining a mortgage should be more difficult than before the outbreak of the coronavirus.

Why is it a bad idea to port my mortgage onto a property I’m buying? 

This all depends on your current mortgage product and the terms and conditions attached to this. Some customers are better off porting their current mortgage while others are better suited for a new product. If you’re not sure which option is best for you, a mortgage advisor will review your circumstances to give you the best advice. 

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I’ve got a fixed-rate mortgage recently. Can I get a better deal? 

There is normally a redemption charge on fixed-rate mortgages for the term of the offer. Although there may be better offers, the charge on redeeming the fixed rate may well mean that you are paying more money overall.

Can I get a better deal than my current variable rate mortgage? 

Variable-rate mortgages provide full flexibility and can be redeemed at any time without facing any financial charges. However, due to the flexibility, they are normally more expensive than other mortgage products.

Your Mortgage adviser can advise on the best rates available, and we are confident that you will save money and reduce your monthly repayments.

What mortgages are available for first-time buyers? 

If you’re looking to get the key to your first home, you’ll need a deposit of at least 10%.

A mortgage advisor will discuss all of the different options on the table, so there’s no need to feel overwhelmed buying your first home. 

Will mortgages go down? 

Mortgage rates only go down if they’re on a base rate tracker or standard variable. The Bank of England will also need to lower its base rate, which is currently at 0.1%.

There’s not a huge amount of wiggle room to go even lower. The good news is that it’s already at a record low.

Which mortgages allow overpayments? 

Most mortgage products allow overpayments of up to 10% per year without incurring charges.

Some products even allow unlimited payments, but you would need to speak to your mortgage adviser for more details.

Which mortgages have prepayment charges? 

Unless your mortgage product is a standard variable rate or selective tracker rates, then all mortgage products will usually have a charge for redeeming the mortgage in full during the term of the product.

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Why do mortgages fall through? 

Mortgages generally fail to be approved due to adverse details obtained from a credit report that your mortgage adviser was not aware of at the time of application or the income supplied not being confirmed as advised.

It’s always best to make you mortgage adviser aware of any circumstances that you think may impact your application to avoid disappointment at a later date.

About Mashroom Mortgages 

Mashroom Mortgages have access to over 12,000 mortgages from 90+ lenders and we can find the right mortgage to suit your individual needs.

The expert advice at Mashroom, combined with the volume of mortgages we process monthly ensures that our clients have access to the latest deals available and receive a first-class service.

We will take care of everything from explaining all of your options and helping you select the right mortgage, to choosing the most suitable protection for you and your family and handling the whole application process.

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Mashroom is an appointed representative of Adelphi Insurance Brokers Ltd. Adelphi Insurance Brokers Ltd is authorised and regulated by the Financial Conduct Authority (FCA). Their Financial Services Register number is 594620, with permitted business activities being introducing, advising, arranging, dealing as agent, assisting in the administration and performance of general insurance contracts and credit broking in relation to insurance instalment facilities. You may check this on the Financial Services Register by visiting the FCA’s website, register.fca.org.uk or by contacting the FCA on 0800 111 6768