The pain and angst of buying a home is known by all of us who have been through the process and usually we have taken a 2-5 year deal with some form of benefit within that time period.
Whether a fixed rate or some form of tracker, at the end of the beneficial period it will revert back to that bank’s SVR (Standard variable rate). SVR’s have historically never been this low, so to most of us why should we bother going through all that rigmarole again?
We all declare “it’s not a bad rate, I can afford it these days”, also and often within that period we have had pay rises, we’ve become accustom to running a household budget etc or in many cases the SVR may well be lower than what was originally expected.
What many people fail to realise is that whilst the SVR’s have sat at historic lows, there are a very competitive amount of fixed rate products available that are lower than some SVR rates, although these are subject to equity, credit history and annual income checks.
It reminded me of a story I was once told about a Grandfather, his Granddaughter and a dog sitting on the front porch whilst watching the world go by.
The dog Oscar was lying down close to them and as the Granddad leaned back on his rocking chair, Oscar would let out a howl and moan like a lonesome wolf lost from its pack.
“Granddad” said Elizabeth sitting on his lap. “Why does Oscar keep howling? Is he poorly”? “No Elizabeth, Oscar isn’t poorly, every time we rock back in this chair it presses against the floorboards which in turn pops up a tiny nail just under where Oscar is lying”.
“So every time we lean back he gets a spike in his bum ha ha?” Laughs Elizabeth. “Yes” Laughs Granddad. Leaning back once more Oscar gave out another wolf like yowl. “So why doesn’t he move if it’s hurting him so?” “Well” said the old wizened grandfather, “I guess it’s just not hurting him enough to move”.
I recently sat down with a client to review their current mortgage. My remit was to focus on other areas as they were quite happy with the SVR payments they were making. As an experienced adviser I understand the importance of reviewing all aspects before advising on the best client outcomes.
It became apparent very quickly that we could save them 20% on monthly payments. They had become so comfortable paying the usual monthly payment, we opted for a new lower fixed rate yet keeping the monthly payments the same allowed the mortgage term to be reduced from 20 years to 10 which should get them much closer to their mortgage free dream.
Now surely that’s worth moving towards?
Rest assured that you are in safe hands with an experienced, reliable firm who have your best interests at the very heart of everything we do. We will hold your hand through the whole process and make the experience almost bearable.
If you would like the burden halved and be allowed to focus on the exciting elements of buying a home, then get in touch with me to have a chat and see what can be achieved.
Daniel Hulme CeMAP
J&M Green Mortgage Services Ltd
07743 357 419
This information is given as a guide. Lenders affordability calculations require proof of income and criteria can vary. All aspects of an individual’s circumstances will be considered before making a recommendation.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
We normally charge a fee for mortgage advice, however this will be dependent on your circumstances. Our typical fee is £350 payable upon receipt of offer of mortgage.
J&M Green Mortgage Services Ltd is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority