Getting your Mortgage sorted

An estimated 1.4 million homeowners will come off discount and fixed rate mortgage deals this year, and almost all will face higher charges. It pays to plan ahead in order to reduce the impact of higher rates. when you come to the end of your mortgage deal you will go onto your lenders standard variable rate, which will normally be a significantly higher rate than you were paying.

Before you get to the end of your current deal you need to ascertain the current rate you are on and the rate you will be put on after the deal ends. To do this you need to talk to your current lender. Next you need to look at the current deals that are available. It can help to consult a qualified mortgage broker who will have access to the whole market, and can advise you on the best deals available.

It should be noted that many lenders now charge an arrangement fee of around £1000 which needs to be taken into account. If possible you may consider cashing in on savings you have to reduce the size of your mortgage which will cut your monthly payments and the overall amount you pay back. This will also help cushion the effect should house prices fall significantly and keep you out of a negative equity situation.