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Reducing unnecessary outgoings are often an aim for many, particularly amid the ongoing financial impact of the coronavirus crisis. Those who have a mortgage may be interested to look into whether they can shave money off their monthly and annual expenditure.
However, it seems not everyone is taking advantage of the savings which could potentially be had, as Miles Robinson, Head of Mortgages at online mortgage broker Trussle, pointed out.
He told Express.co.uk: “Mortgages are often the biggest monthly bill people face, and two in five borrowers are missing out on a cheaper deal by sticking with their current lender.
“For those nearing the end of their term, remortgaging might be one of easiest ways you can save money on your mortgage.”
So, just how much could potentially be saved each month?
According to research by the online mortgage broker, the savings could well be in the hundreds.
A way to see whether this could save a person money is by accessing a designated remortgage calculator online.
“At Trussle, our customers save £334 on average per month by remortgaging onto a fixed rate, so it’s worth using a remortgage calculator to see if switching could save you money,” he continued.
Another cash-saving option is a product transfer.
Mr Robinson said: “We’ve also found that those who arrange a product transfer save on average £326.31 per month.
“A product transfer is when you move from your existing mortgage deal to a new one with your current lender.”
Alternatively, some may wish to look into switching mortgage type, an option which the mortgage expert went on to detail.
“Lastly, you could switch to an interest-only mortgage and only pay back the interest on the loan each month,” he said.
“You don’t pay back the money you borrowed to buy the property (the capital) until the end of the mortgage term.
“This means that your monthly payments are much lower than a repayment mortgage, but you’ll need to have the money to pay back the entire loan at the end.
“It’s worth being aware that lenders will only agree to provide you with an interest-only mortgage if they’re confident you’ll have the ability to pay the full amount back at the end of the mortgage term.
“There are strict guidelines to ensure responsible interest-only lending.”
Whatever option a person may be looking into when it comes to mortgages, Mr Robinson urged people to think about their own situation at an individual level.
“When it comes to your mortgage, it’s always important to consider your personal and future circumstances,” he said.
Mr Robinson also suggested seeking insight regarding suitable deals by contacting a mortgage broker.
“Speak to an online mortgage broker, like Trussle, who will be able to find the most suitable deal for you,” he commented.
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