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October 2012 Newsletter – Could You Save Money by Moving Your Mortgage?

November 6th, 2012 Posted in Monthly Newsletters

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New research from Barclays* has shown that an estimated 1 million people are currently on their lenders Standard Variable Rate and could benefit from considering a remortgage.

Many lenders have recently reduced their interest rates on new products, so if your mortgage deal has come to an end, now might be a great time to remortgage. Some products rates are the lowest they have been all year** particularly on mortgages with low loan-to-values. There are a number of reasons for this reduction in rates including the announcement in July of the Funding for Lending scheme in which the Bank of England and Treasury offer incentives to banks to boost lending and lower interest rates.

There have also been further increases to lenders standard variable rate (SVR), meaning your monthly mortgage payments would increase if you are a borrower on SVR with these lenders. There are an estimated 1.6 million customers that have been affected by these recent increases. If you have been affected by an SVR increase, moving your mortgage could save you money. While not all lenders have made an increase some lenders could make a change at any time. Lenders could also have the option of increasing the cap on how much they can increase their SVR by, so it is also worth checking your mortgage contract to see if this may apply to you.

The recent House Price Index from Nationwide has shown that some property prices in certain areas have recently increased. London house prices in particular have increased by 2.1% compared to this time last year. This means if you are a home-owner the rise in equity of your home may mean you now fall into a lower Loan to Value (LTV) bracket. This will mean you may now be in a better position to get a competitive rate.

It is always a good idea to keep your mortgage under review to see if you are on the best rate for your circumstances. There are many options currently on the market, including product transfers with your existing lender.

Here at The Mortgage Store we can take the hassle out of remortgaging and can help find the best deal for you. We are able to provide a full advice service and guide you through all the options available. There are many things to take into consideration when taking out a mortgage such as general insurance and protection; thankfully we all offer a full service in insurance and protection.

To find out more why not contact us Today

We look forward to hearing from you.

* Barclays internal data August 2012.

** National Press, Daily Mail article – August 2012.

For further details or to arrange an interview please use our ‘Contact’ Page.

For a PDF version of this newsletter please click the PDF icon: The Mortgage Store Newsletter October 2012 PDF

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  • The Mortgage Store (TMS Ltd.) is a firm of professional Advisers who specialize in all types of Mortgages and Related Insurance Services.


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