Half of consumers switch mortgage companies
According to the HSBC,homeowners all around the world are switching their mortgage company. This is happening because people want to find a better deal which costs less, or because of the interest rate rises. There are also other reasons for why people have changed mortgage companies, these reasons include; moving somewhere else, buying a new property, or because their current mortgage deal is about to expire.
Many people have the same or very similar mortgages, this is because mortgages are only different in terms of the lender you got them from.For this reason, before taking out a mortgage you need to ask yourself this one question: if the lender isn’t offering something different, why should I pay more? This will help you to understand your mortgage deal a lot more and help you save money as you will know to find the best lender.When looking for the best possible mortgage deal with the lowest costs, make sure that you stick with a reputable company as you will likely be betteroff in the long run.
When first taking out a SunWest Mortgage, here is some information you will need to remember; choosing your monthly payment rate isn’t all your mortgage is about, you need to remember that there are other aspects which are important too. Additionally, check if you will need to pay any extra charges if you want to switch mortgages companies down the line.
There are also costs when you leave your current mortgage deal, there is an early repayment charge. This is a penalty which is applied to you if you repay your mortgage during a tie-in period.A tie-in period is the length of time you are on an initial deal. This means that you need to switch to a mortgage deal which offers a lot lower monthly payment rate than the one you are currently on to make the switch worth it.
Another charge you will have to pay is called the exit fee, this is when you ay your current mortgage lender to forward your title deeds to your solicitor. You can usually pay this fee upfront when you first get your mortgage deal or pay it at the end when or if you decide to leave. This payment doesn’t have any interest on it, so it doesn’t really matter when you decide to pay, whether that be upfront or before you leave.
There are a few circumstances when you shouldn’t switch your mortgage deal, these circumstances are; when your income has decreased, this is because the new lender will run an affordability assessment which will determine whether you are able to pay off the loan or not. If your income has decreased, then new lenders will likely not give you a mortgage deal. Another circumstance is when your credit rating is reduced, this is because you may not be able to find another mortgage deal as you don’t qualify. For this reason, make sure to check your credit rating before you apply for another mortgage deal.