Change is sometimes difficult and most people are creatures of habit. If something is working for them, or they have at least achieved a level of comfort with something, they’ll stick with it. But people who stick with the same mortgage broker for years often miss out on thousands of pounds in savings that could be theirs if they switched to a different broker. Below we’re going to look at several reasons why switching mortgage brokers may be the right thing to do.
WHY SWITCHING MORTGAGE BROKERS MIGHT BE A GOOD IDEA
At Mortigo we are all about empowering people to take control of the mortgage process. That includes the often-overlooked advantages of switching brokers. Here are several reasons why switching may be the right thing to do.
Your Loan-to-Value Has Decreased – Loan to value, or LTV, is one of those finance details that makes most people’s brain freeze. But it’s important to keep tabs on it. Because if your LTV has decreased as you’ve paid down your mortgage a new broker might be able to find you a lower rate on your loan.
Your Introductory Deal is Coming to an End – A lot of homebuyers enter into mortgage agreements that include low fixed rates for a specified period of time. At the end of that time, the rate on the loan reverts to the lender’s SVR, or Standard Variable Rate, which is invariably higher. If you’re reaching the end of your discount period shopping around for a better deal elsewhere is often a good idea.
Your financial situation has improved – If you’ve been given a big raise or inherited a lot of money you may be able to make more generous mortgage payments every month. However, the terms of your current loan may not allow it. If that’s the case you should consider switching mortgage brokers in order to find a loan you can pay off faster. Just be aware that there may be a penalty for bailing on your current loan.
Mortgage Rates Have Dropped – Mortgage rates tend to see-saw but there are occasions when they drop consistently over a period of time. If you notice that happening it may be a signal for you to consider switching mortgage brokers. You may well find a loan from another lender with a rate low enough to make it financially viable to accept the early redemption fees on your current loan (if any).
For more timely advice on switching brokers call Mortigo on 0808 164 1616.