When Time magazine carried out a survey regarding new year resolutions in 2015, they found the most popular was to ‘enjoy life to the fullest’. However, resolutions regarding money also figured highly, with ‘saving more and spending less’ important for a third of those questioned. With 2017 having just started it’s not too late to make some resolutions yourself regarding your mortgage which could save you both money and valuable time. Here are three examples of just what you can do.
- Think about remortgaging
You can make significant savings to your outgoings by switching your mortgage to another lender. Mortgage rates are still at record low levels as 2017 starts and, as such, you could find some great deals to improve your mortgage. For instance, you could save thousands of pounds by switching to a discounted or fixed-rate mortgage. You could even find some lenders who will contribute to your remortgaging costs. However, it’s wise to act sooner rather than later with many experts predicting 2017 will be the year those record low mortgage rates start to rise again.
As finance expert Martin Lewis says: “It’s plausible that 2017 is the year that low mortgage rates move upwards. This is more to do with the City’s forecast about long-term interest rates rather than the UK base rate, which affects what the new fixed-rate mortgages are set to. In fact, rates have already started to rise, especially for longer fixed rate mortgages.”
- Shop around for a better deal
If your discounted or fixed-rate mortgage is nearing its end date, your lender might get in touch offering you a number of different deals so that you don’t go to another lender.
Nevertheless, even though some of these deals could be tempting, it’s in your interest to look around to find the very best deal for yourself. You’ll also find that, often, lenders keep their best mortgage rates for new customers, which is another reason it can pay to go elsewhere. To find the best mortgage product, it can be helpful to use an online comparison site or a mortgage broker.
- Make extra repayments
Whether you’re on a discounted or fixed-rate mortgage, it’s likely your lender will allow you to make overpayments. So, if you’re in a position to make overpayments to your mortgage, do so; it can reduce your overall interest costs and means you repay your mortgage quicker. Generally, lenders let you pay up to 10% of your balance in overpayments per annum with the minimum lump sum repayment usually between £500 and £1,000.
When you have an offset or flexible mortgage, these relatively small extra repayments can make a surprisingly big difference to the overall payments you make in interest. Those with a traditional mortgage should deposit a small amount into a savings account each month, which will then allow you to make regular lump sum repayments.
One more resolution you should make is to check out the amazing choice of new houses available from Whathouse.com. If you’re looking for a new home, it could be the best resolution of all.