March 8, 2010
Save Thousands By Finding A Better Mortgage
It might seem like a hassle to shop round for new financial products when yours seem to be working perfectly well but not many people know that you can save thousands by finding a better deal.
In fact, according to moneysupermarket.com, over £3,450 is up for grabs for households who make the switch to the best financial products over the next year.
Clare Francis, site editor at moneysupermarket.com, says: "There are some really easy savings to be made, just by spending half an hour reviewing where you're at financially. It's easy to be complacent but some rates on products change quite regularly so literally, it really does pay to be vigilant."
Mortgages account for the biggest single financial commitment you are ever likely to make so it is vital homeowners stay on top of the game and ensure they really are getting the best deal possible. This is even more crucial in an environment where rates are constantly on the move.
Over the last month or so there has been many standard variable rates increases while rates for new borrowers fell and more higher loan to value mortgages became available. Also, with the Bank of England base rate at an all time low, and only likely to increase, now may be the time to consider a longer term fixed rate mortgage.
The website says the average SVR rate is 4.69% right now, so moving from that to a lower rate of 3%, for example, on a £200,000 mortgage would be a saving of more than £2000 alone.
For those with high level of savings it may also be a good time to consider an offset mortgage to make best use of all your capital. Also, for those who have struggled with a sub-prime mortgage, now might be the time to see whether you could get hold of a more manageable deal.
Whatever your circumstances shopping around for the best mortgage and keeping a close eye on mortgage rates throughout the year is advisable to ensure you get the best deal.
SOURCE: Moneysupermarket.com, 01/03/10
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