Do you know what the average mortgage interest rate is?
The average mortgage rate is calculated by taking the rate charged across all mortgage providers for all products and taking the average figure. In June, the average mortgage interest rate was 2.99%, however, we are typically securing our client’s mortgage rates that start in the 1’s.
Do you know what your mortgage interest rate is?
There is a significant number of home owners being over-charged on their mortgage. Nobody wants to be over charged or short changed. We’d all like a few extra £££’s in our bank account. Step one when looking to reduce your monthly outgoings should be to check your mortgage rate. If you’re paying around or more than the average you could make a decent long term saving by switching.
How do I know if I’m being overcharged?
It depends on the type of deal you have and how much the value to loan ratio is on your property. Otherwise known as equity. This describes the amount of value in the property versus the value of the loan. However, we believe that most people could save £1000’s by switching their mortgage deals now while mortgage rates are at their lowest.
Despite the fact most people could save money, so many are reluctant to spend their time searching for a better deal. Mortgages aren’t exactly high up on the list of favoured past times.
What about if you knew just how much money you could save?
You might think a few extra quid isn’t worth the time and effort. And if that’s all you’d save I’d be inclined to agree. But how would you feel if you could save £1,000’s? That’s suddenly a bit more worthwhile, right?
As an example, if you had a £200,000 repayment mortgage over 25 years. Your monthly charge at the average rate would be around £947. The same mortgage charged at 4.81% would push monthly charges up to £1,147. That’s a £200 difference or a £2,400 saving over the course of a year.
Or if you secure an interest rate that is 1.5% your monthly payments would be around £800. A difference of £347 per month/ over £4,000 in a year. Imagine what you could do with that money?!
So why pay more than you have to?
It doesn’t have to be a complicated process to obtain a better mortgage deal. In fact, here at Number One Mortgages, our expert advisors offer a no obligation initial consultation. So, if we can’t find you a better deal you don’t need to pay us a penny.
That’s surely a win-win.