Alan, what happens when my mortgage deal comes to an end? I get asked this question, on average a couple of times a week.
You know the sketch, I put you onto a mortgage deal usually for a fixed period of 2,3 or 5 years as appropriate to your circumstances, then the deal approaches an end date after which your rate shoots up to the lenders Standard Variable Rate (SVR) which in almost all cases mean you need to hand over a bigger wedge of your hard-earned cash to keep the roof over you and your family’s head.
It may surprise you to learn that approximately *4 million mortgage holders in the UK are paying more than they need to on their mortgage – the biggest expense in most people’s life. Now I know that some of you are probably thinking that 90% of facts are made up on the spot. (sorry, couldn’t resist that one!), but my facts are based on research within our industry:
“Four million households languish on SVR
By: Joanne Atkin in Lending news 22nd March 2017
More than a third (36%) of homeowners are still on a standard variable rate mortgage (SVR), according to research”
As one of our valued clients you’re already benefiting from being in control of your mortgage with our help. But what about your family and friends?
Why would they want to do such a crazy thing!? Good question:
- Too busy.
- I can’t find my mortgage paperwork, I don’t know when my deal ends.
- My mortgage broker didn’t remind me.
- Already!?…. Tempus Fugit.
- ……and a ton of other reasons, personally I blame the hippocampus, it’s clearly failing in its job. One should never work with animals anyway, too unpredictable, especially when they are that big.
Well, you’ll be pleased to hear that change is afoot. After several years of lenders effectively ignoring their borrowers, they have started speaking to them about their options when their current deals come to an end.
Around 4 months or so before your deal ends, you may get a letter from your lender reminding you that your mortgage deal is ending shortly and that you should contact them to see what they can do for you, some lenders even remind you that you can call your broker for advice…..nice chaps.
I can hear you all thinking, ‘I bet I know where he is going with this!’…………and you will be right, gold star!
There are some very good reasons why you need to speak with us first:
1. We will always act in your best interests – even if we don’t do business.
2. We are ‘Whole of Market’ brokers with access to thousands of deals. – Lenders are not allowed to do this – they can only offer you their own products.
3. We invest in the latest updated mortgage sourcing software systems and can demonstrate to you how the new deal from your existing lender compares – Lenders cannot do this.
4. If the most suitable option is to remain with your existing lender, we will offer you our full advice and recommendation to evidence this– the onus is on US. If you go direct to your lender, it’s on a ‘buyer beware’ basis – the onus is on YOU.
5. We work for you, not the lenders – we are unbiased. Why restrict your options?
6. We are easy to deal with – we don’t have a 3-week waiting time for an appointment.
So…. get in touch with us if you receive a letter from your lender about your deal coming to an end, in fact even if you haven’t received a letter, don’t leave things to chance, find out your mortgage deal end date now, it’ll be in various sections, 3, 4, 6, 7and 8 of your main mortgage offer/illustration – depends on your lender, contact us if you need help.
Let us know this date and we can stick it in our Mortgage Monitoring software, it flags up 4 months before your deal end date so we can get on it in good time to help ensure you don’t pay more than you need to on your mortgage, take control of your mortgage with our help, don’t let it control you.
There is a good reason almost *80% of mortgage business in the UK is conducted through Mortgage Brokers – make sure you are in that figure:
“Broker market share rises to 80% as channel increases in importance to lenders”
By: Owain Thomas of Mortgage Solutions 4th October 2017
Oh, and why not do your family and friends a huge favour and bounce this newsletter across to them too. Clear the mantlepiece as you will be inundated with Christmas cards when they see how we may be able to help them. You know it makes sense!
Until next month,
All the best,