Mortgage payments are going through the roof as interest rates rise. One way to reduce them is to switch your product to another deal. But, be careful, you don’t want to switch before your present deal has ended or this could trigger a hefty fee.
You normally can switch up to six months before your deal ends, without penalty. Check with your lender before you do anything. or contact us at https://mortgageoptionsni.co.uk/contact/ we will check this for you with no fee.
It appears tracker deals are in favour at this time, based on the fact that some people believe the rates will start to go down. Be aware, if rates go up so will your mortgage payment.
If all else fails and you find you are heading into financial trouble, best to act before sooner rather than later and inform your lender. They are there to help.
There may be another option however.
An interest-only mortgage allows borrowers to repay only the interest on the loan each month, and not the actual capital amount. This can be helpful in reducing monthly payments, but remember that you’ll still have to pay back the original loan amount at some point. When you feel that you are in a position to pay the full amount contact your lender and ask for the switch
For a £100,000 mortgage at an interest rate of 4.5% interest only may reduce you monthly payments from £555 to £375 per month.
It would be a saving of £180 per month which could tide you over until things improve in the financial markets.
It’s important to remember that no matter what type of mortgage you choose, any outstanding debt will still need to be paid off in full at some point – usually when your home is sold.
This is all about survival. Any questions, ask Ross https://mortgageoptionsni.co.uk/contact/