How can I prepare for buying a property?
• Plan your budget based on the most you may have to pay for a mortgage.
• Try not to take the maximum mortgage on offer – always think from the point of view of affordability
• Think about whether you need a fixed rate so your mortgage payment will stay the same for a set period.
• Build up your savings.
• Work out how long you could live on your savings if you lost your job.
• Check what benefits your employer will provide if you get ill.
• Consider taking out insurance in case you are made redundant, get critically ill, or have an accident.
• Use Mortgage calculator on the Mortgages section of the website
• You can work out how much a change in interest rates would affect your own loan.
How can I review my mortgage?
You’ll get a statement at least once a year. Check to see what you’re paying, when any special deals end, and the balance of the mortgage left to pay
Am I still on a special deal or has it ended?
Check your statement to see if you are still on a good deal, note when this finishes, and remember to review it again closer to this time.
Does my mortgage have an early-repayment charge?
Check the KFI. Your annual statement will also show if there is an early-repayment charge and when it ends – make a note of the date, in case you want to switch to a new mortgage.
Should I switch my mortgage?
You can change your mortgage to get a better deal – known as switching. You can shop around every few years to make sure you are getting a good deal. You don’t have to move house to move your mortgage.
Switching can cut your monthly payments. But you’ll need to weigh up these monthly savings or other benefits against the costs of making the switch.
Get a KFI for mortgages that you are interested in, and check that you will save money by switching.
What will be the switching cost for me?
Especially in the early years, your mortgage might have early-repayment charges. These can be hefty if you are still on a special deal, such as a fixed, discounted or cashback mortgage. Even if there are no early-repayment charges, your lender might make an administration charge – this could be quite expensive.
If you are switching to a new lender, they must value your home and there will be legal costs to pay. With some mortgage deals, the lender will pay these fees for you.
Make sure you get back the costs of switching before any special deal ends – for example, in less than two years if you switch to a two-year discounted rate.
If you are switching lender, check whether they will charge you interest to the end of the month even if you pay off the mortgage earlier by switching. If they do, make sure you switch your mortgage at the end of the month.
Remember that if a deal has no fees, the rate might not be as good as one that does.
MOST IMPORTANT: If you’ve found a good deal, it’s worth going back to your existing lender to see if it will offer you a similar deal to keep you as a customer. Don’t hesitate to tell your existing lender that you have spotted a better offer elsewhere, so will he be able to match that offer.
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