How Remortgaging Could
Help Reduce Outgoings
We take a look at the current mortgage facts to help you decide if remortgaging is something that could help you save money.
Many of us are looking at ways we can reduce our outgoings, save money or generally be smarter with our finances during these challenging times.
If you are a homeowner with a mortgage, there could be a lifeline available by remortgaging and taking advantage of the current situation. Additional benefits may now be available to you that could make a huge difference to your quality of life.
Lenders often don’t tell their customers if they are able to move to a cheaper or more suitable deal, meaning thousands of people are paying more than they need to. Mortgage interest rates are now at an all time low (from 1.19%) so we spoke with Andrew Nolan, the Managing Director Nolan Mortgages Ltd to find out the latest facts.
Here’s what Andrew told us:
- Many lenders are taking furloughed income into account.
- There are lots of re-mortgage products still available from major lenders.
- Thousands make the most of the fixed rates available to gain certainty in uncertain times as 2 and 5 year fixed rates are also at an all-time low.
- The average amount saved when moving to a lower rate mortgage in the UK is a mouth-watering £4,500 per year.
- Consolidating debt while moving mortgage could further reduce outgoings and the interest rate paid overall.
- Minimum payments on credit cards trap people into high-interest long term payments. For example, £15,400 on credit card paid back with a minimum payment, at a rate of 19.9%, would take a staggering 41 years to pay off and £23,264 In interest alone with a monthly payment of £386. Minimum monthly payments pay off very little of the actual debt, therefore, people end up trapped paying high interest for years on end.
- The same £15,400 moved to a mortgage rate of 1.59% and a 15 year term would cost just £1,918 in interest and a monthly payment of just £969.
- There are 21,000 homeowner re-mortgages a month, many of which are used to consolidate debt and get back in control. This figure is likely to increase as thousands look to fund ways to reduce outgoings.
For more details about these facts or help with your mortgage requirements, please contact Andrew directly.