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Reducing your monthly expenditure when you remortgage

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Your mortgage repayments are likely to be your largest monthly expense so if your current mortgage product is due to expire –  let’s take a look at the market and see if we can get a better deal to reduce your monthly outgoings.

If your mortgage is due for renewal we recommend that you shop around and compare deals – now is a great opportunity to see what the market has to offer you. The chances are that the value of your home has increased since your last mortgage renewal which is great news in mortgage terms because your LTV (loan to value) will have decreased. Generally the lower the LTV the more competitive the options you have – you present a lower risk to lenders so they’re much keener to get your business.  From this stronger position you should be able to secure a lower borrowing rate which means you can make some big savings on your monthly repayments by securing a better mortgage deal.

Beware though because whilst this is potentially a time to get a good deal, delaying could cost you hundreds of pounds. Ensure you are sorting out your new mortgage deal in good time we recommend 6-8 weeks before your renewal is actually due. If you delay and your term ends before you have arranged a new deal you will default to your lender’s standard variable interest rate. In the majority of cases this standard rate will be much higher than your mortgage rate and will cost you dearly if you slip into it.

If your mortgage is due for renewal in the next 6-8 weeks please give us a call and make an appointment to discuss your initial requirements (there is no charge for this appointment).

Your home maybe repossessed if you do not keep up repayments on your mortgage.

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