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Why it's a good idea to switch your type of mortgage

Mortgage providers learned the hard way not to be so lavish with their cash. Getting a great deal on a mortgage is tougher than ever, but the wide variety of mortgage types that are available mean that those customers who are prepared to shop around and do their research can find some attractive options. There are several reasons why it's a good idea to switch your type of mortgage.

Relying on the stagnant economy to keep interest rates low is no longer a safe option. Mortgage providers, impatient with the Bank of England's refusal to adjust their base rate, have started to change their rates anyway, leaving those customers who thought they were safe with a tracker mortgage bemused and angry. That might suggest it is a good time to look for the best fixed rate deal.

Look for mortgages that have flexible payment options. Although interest-only mortgages offer the cheapest monthly payments, they are not a good idea for long-term planning. Repayment mortgages that allow occasional periods of interest-only payments or payment holidays can be ideal for those with uncertain income.

When remortgaging, have a calculator to hand to offer an instant assessment about whether the mortgage fees override the attractive interest rate. If you are in the habit of changing your deal every two or three years, it makes sense to look for mortgages without any fees.

Consider a mortgage that is linked to your current account. If you often have a healthy balance in your account, you might find it can make a difference to your monthly mortgage repayments.

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