This is one of the most common questions we get asked, and it makes sense, why wouldn’t you want a cheaper mortgage? It’s definitely something we can help with.
What do we mean by ‘cheaper’ mortgage? It doesn’t necessarily mean you pay less each month. Most people’s goal is to be mortgage free as soon as possible, that’s easier said than done because there’s so much more to it than that with a typical repayment mortgage.
One way you could reduce your monthly payments by simply extending the overall term of your mortgage, this will reduce your monthly payment, but you will end up paying more back over the entire term of the mortgage. This is why you should start with a budget in mind, at Advantage we believe budgeting is very important, we will help you decide how much you should be spending on your mortgage and take it from there.
Throughout your mortgage lifetime you will remortgage several times, every time you remortgage you have an opportunity to review the entire mortgage. Whilst most people take around 25 years to repay their mortgage you should really think more short term, ask yourself, ‘What can I afford to pay for the time being?’ If that means taking a longer or shorter mortgage term for now then that’s what you should do.
The best way to reduce your mortgage payment is to switch to a lower interest rate, (this is known as remortgaging or product transferring) not only does this reduce your payment but crucially the amount you will pay back in total. Advantage is a ‘Whole of Market’ brokerage, you’ve probably heard the term ‘Whole of Market’ a few times before. Whilst it’s important that your broker can use a wide array of lenders, the lowest interest rates are generally offered by the big banks and building societies that are household names. It’s not unusual for a bank to offer lower interest rates exclusively via mortgage brokers than directly to customers, so give us call!
The quickest way to discover the maximum you can comfortably borrow is by speaking to an experienced mortgage broker, such as ourselves, and getting them to check out all available mortgage deals, that way you can be sure you get the cheapest deal. Contact us now to get your home move moving!