Moving house is an exciting time and more often than not, home movers choose to coincide the time of their move with the time when their mortgage product is due for renewal to avoid paying early repayment charges. All sounds fine so far, we’re measuring up, ordering curtains and dreaming about life in our fab new home.
The problem comes when the home moving process takes longer than planned. At this point the net drops down and you are caught in the home mover mortgage trap – also known as – standard variable rate.
That’s right, because the home moving process has taken longer than anticipated, your current mortgage product has expired and your existing lender has crept-up behind you and thrown the standard variable rate net firmly over your head. Now things are really hotting up and this exciting time has suddenly turned pretty stressful. Your interest rate is likely to have doubled and the weeks are slipping by, these weeks turn to months and everything is now getting expensive. OK, stop!
Let’s rewind and put a good mortgage adviser into the equation right from the get-go. Let’s call him your ‘wing man’, not only has he secured you the best mortgage product from across the whole of the market, he’s foreseen the trap and put a plan in place for you to avoid it. Phew, net dodged – back to choosing wallpaper.
Your home may be repossessed if you do not keep up the repayments on your mortgage.