If your current mortgage deal is coming to an end, or you’re looking to switch to a cheaper deal, it can benefit you to speak to a professional first.

Mortgage brokers can give you personalised advice that can assist you in finding the right deal for you, whatever that may be.

Here are three reasons why you should always speak to a professional first if you’re switching your mortgage deal.

1. You may end up on a Standard Variable Rate

When your fixed-, tracker-, or variable-rate deal comes to an end, your lender will most likely move you onto their Standard Variable Rate (SVR). Sitting on a lender’s SVR might not be the best thing for two reasons:

  • They are typically more expensive than other fixed- or tracker-rate deals available across the market. According to Unbiased, in April 2020 the average fixed rate was 1.5%, compared to an average SVR of 3.5%.
  • Your lender can change the SVR at any point. This could see your repayments rise at any point during your mortgage.

For these reasons, it can be beneficial to shop around and find a better deal.

If you were moved onto your lender’s SVR when your fixed-rate deal ended, then don’t worry – it’s not too late to switch to a cheaper deal.

2. Your current lender may no longer be the best option for you

A few weeks before your current deal ends, your lender will often contact you to offer you a new rate. It might seem easier to just take the deal they are offering, but this may not be the best or cheapest one for you.

A mortgage broker can be particularly helpful here. They can scour the market for you and find the most appropriate deals available across a range of lenders. They’ll be able to advise you on which lenders have excellent rates, who is well-placed to agree on the loan you need, and who their clients have had good experiences with, too.

There are even many deals that aren’t available to the public and can only be accessed through a mortgage broker.

Also, you may have endured a particularly bad experience with your current lender. Whether it was poor customer service or high fees, you may want to change your mortgage just to move to a new lender with who you’ll feel more comfortable.

3. A mortgage broker can advise you in your specific circumstances

Getting a mortgage depends on your personal circumstances, and a mortgage broker has excellent experience of working with lenders to find the right one for each borrower.

For example, a lower interest rate can often feel like the highest priority, as it means lower monthly repayments.

However, if your circumstances have changed since you took out your original mortgage, or you’re self-employed, lower repayments may not be as high a priority as stability and consistency.

Similarly, if you don’t have much left to pay off on your mortgage, the lowest rate might not be the best option because it may have high fees associated. It may not be cost-effective to pay excessive fees upfront just for the sake of getting the lowest interest rate.

A mortgage broker will be able to find deals that best suit your financial circumstances. They’re well-versed on affordability criteria and credit scoring too, so they’ll be able to find deals that you’re most likely to be accepted for.

Get in touch

At Digney Grant, we have over 20 years of experience in helping homeowners get the most from their money with their mortgage.

We can find the right mortgage deal for you and give you personalised advice to help you make an informed decision. Please call +44 (0)28 3082 8880 for more information.

Please note:

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.

Think carefully before securing other debts against your home.