Millions are paying too much interest on their mortgage – are you?

Following the recent increase in the Bank of England base rate and with another potential increase on the horizon, Michael Hodgetts from Lighthouse Platinum Wealth Management wants you to reassess your mortgage to make sure you’re not paying more interest than you need to. He explains:

If you are one of the estimated 3 million borrowers currently paying the standard variable rate on your mortgage, you’ll have seen your monthly payments go up since the base rate rise. By exploring your options and considering a switch to a fixed rate mortgage, your payments won’t increase with any further rate hikes. Plus, the interest rate could be lower than the rate you’re currently paying, leaving you with more disposable income.

Don’t forget, the extra interest being paid is not helping you to reduce the mortgage balance.

When it comes to choosing a new mortgage arrangement, staying with your current lender is often the simplest option – but it may not be the best solution for you. It’s possible that switching to a new lender would be more suitable and cost effective. As independent, whole of market mortgage advisors we can help find the best mortgage for you.

So why are so many people paying too much interest?

According to a 2017 survey* conducted by an online mortgage broker:

• 65% of UK mortgage borrowers didn’t know that lenders’ standard variable rates are typically higher (and therefore more expensive) than fixed rates
• 48% of borrowers didn’t realise they were coming to the end of their current fixed rate period- at which point you automatically pay the lenders variable rate

With their permission, we contact our mortgage clients shortly before their current fixed rate period comes to an end to begin the process of choosing the next rate. This ensures they won’t pay any more interest than is necessary.

Do you think you could be paying too much interest on your mortgage? Call Michael Hodgetts on 01473 730999 or visit www.lighthouseplatinum.com to find out more

NB: Your home may be repossessed if you do not keep up the repayments on your mortgage.

Lighthouse Platinum Wealth Management Ltd is an appointed representative of Lighthouse Advisory Services Limited which is authorised and regulated by the Financial Conduct Authority.

*Trussle Mortgage Saver Review May 2017