Complacency, probably for most of us, comes when investing or borrowing money. It extends to also putting in place the right tax efficient Wills, financial planning to achieve our financial goals and to save Income Tax, Capital Gains Tax and now more than ever Inheritance Tax.
My comments in this article are about avoiding this complacency and the importance of reviewing your mortgage.
When was the last time you reviewed your mortgage? For so many people the mortgage is one of their largest financial commitments but sadly complacency steps in.
Things have improved in the last 20 years, we now have fixed or discounted rate mortgages but what happens when they come to an end? If you take no action your mortgage reverts to your lenders standard variable rate which is so often significantly higher. This complacency is costing you often thousands of pounds.
The first important piece of advice is not to let, as so many people do, your mortgage get to the end of the fixed or discounted rate term. Many lenders allow you to obtain a new mortgage offer up to six months before your current term expires. This forward planning can lock into a competitive rate.
Steps we recommend you take before your mortgage term ends: –
Review your Mortgage
With such a wide variety of fixed and discounted rate options we believe reviewing your options at least six months before your mortgage rate ends is important
The general forecast is that we may see falling interest rates over the next couple of years although world events could change this. We must take this into account when deciding on our mortgage choices.
If you already are tempted to leave it for a while we can show you the cost savings that can be achieved. It can save thousands of pounds.
Trevor Downing FPMI FPFS
