Knowing your Mortgage

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Knowing your Mortgage

3. Ask yourself how much you know about your mortgage product. If you can’t answer many of your own questions, you may not be on the best deal. Questions to ask yourself include: When was my mortgage last reviewed? Am I tied in to a particular deal or rate? What type of mortgage do I have? (For example, a fixed, variable or capped rate) Do I feel that my monthly payment is too high, or could I pay more? How flexible is my mortgage in terms of overpayments, cash reserves or payment breaks? Am I on a capital repayment method, or interest only? Have I heard from my endowment company regarding the performance of my repayment vehicle?

These, and many more questions could be the key to your saving money or time on the repayment of your mortgage, and if you have not addressed these issues for a few years, then now may be the time to do so. Some lenders may neglect to tell customers when their introductory offer is over, leading to their paying a higher rate than necessary.

Finding out all about your current mortgage puts you in a commanding position to shop about and to rely on your own instincts on what is the right deal for you. Your current circumstances may now be vastly different from those when you initially took the mortgage, meaning that a different product or timescale may be better suited to you. If you feel that you may be able to pay more to your mortgage, you may wish to reduce your term, the opposite being the case if you are struggling to make your payments.

If your are in a job where your salary fluctuates, you may wish to benefit from flexible options offered by other products, allowing you to make overpayments, including large lump sums, to your mortgage. For those with poorly performing repayment vehicles, you may wish to review your options, such as adding a part and part option, where you begin to pay back some of the capital to help make up some of any potential shortfall.

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