Homeowner saves £2,100 on mortgage with advice from Martin Lewis
A Martin Lewis fan has told how she managed to save over £2,000 on her mortgage thanks to advice shared by the founder of MoneySavingExpert.
The financial guru has warned that mortgage costs are rising steadily, but urges homeowners to act while they can because there are deals out there that could save you hundreds of pounds in the long run. Home loan rates are slowly rising, and this is due to the fact that the Bank of England (BoE) raised interest rates for the fifth consecutive time last week.
According to the Mirror, this rate is built into the cost of mortgages and anyone with a trailing rate or a standard variable rate (SVR) mortgage will see their interest rates automatically increase based on any rise in prices. BoE rate. Existing fixed rate offers are not affected by base rate changes, but new fixed rate offers are.
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Some lenders have been snapping up cheap deals in recent weeks ahead of scheduled rate hikes, and the latest email from MoneySavingExpert said those on tracker or SVR home loans “will soon see costs rise by around £12/month for £100,000 of mortgage debt”. He added that “today’s cheapest patches are three times higher than last October’s.”
However, a MoneySavingExpert reader explained how he was able to save £2,100 a year when he struck a deal with his existing mortgage lender. Re-mortgizing with your current lender is known as a product transfer, and in some cases these transactions can be less expensive than re-mortgaging with a new lender. However, be aware that this is not always the case, so be sure to do your research.
Taking a product transfer can often mean that the difficult affordability checks taken out with new mortgages are removed.
The woman explained: “I’ve just made a new deal with my existing provider at the end of a five year fix, I was able to save £175/month [£2,100/year] – same terms. I used the mortgage tool on MSE.”
Martin Lewis has a few tips he urges landlords to follow if they want to find the best deal for them:
Ask your current lender for any offers
Martin Lewis said: “[Product transfers] It used to not be a great option, but nowadays, since your current lender can waive affordability checks if you don’t borrow more, it can work well. Plus, there’s likely to be less paperwork and lower fees.”
Look and compare the best deals
According to Martin Lewis, the MSE Mortgage Best Buys Comparison can help you find and show you the best deals available in today’s market. One reader said: ‘We remortgaged in April and our monthly payment went from £900 to £750. This was our first remortgage as we bought our first house two years ago.’
Compare offers to the offer you currently have
Online mortgage calculators can help you determine your repayment amount with different types of mortgages. MoneySavingExpert has one, as does MoneyHelper, and most mortgage lenders have theirs too.
Consider using a mortgage broker
Martin Lewis said: “Lenders do both credit and affordability checks (probably harder for some to pass now due to rising cost of living) which can block applications. It’s hard to know who will accept you and how much you will be able to borrow.”
He added: ‘Find a good mortgage broker and they will have information on this that will be very difficult for you to get on your own.
Many mortgage brokers also have access to secret deals that you won’t be able to get yourself from going to lenders directly, and they’ll fight back if a lender gets tough.
Martin Lewis’ urgent act now alerts every potential owner to the opportunity
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