We are all being asked to work at home as much as we can due to the coronavirus pandemic. We should look at our finances and ensure that our outgoings are as low as they possibly can be.
I recently contacted my Mortgage Broker and asked that she checks the mortgage market to see if any better deals were available that would save me money each month but also to allow a change again after say a year where interest rates might be lower. She said I was lucky as I had over 15% equity in my property and that some deals would save me 100 a month. Great news!
Generally, brokers advise that had I been a First Time Buyer the current loan market would be challenging. A lender such as Metro just needed 10% but the majority of Lenders wanted much larger deposits. This was causing my broker a real headache as deals were being pulled all the time.
Getting a deal done in the shortest possible time was a priority.
Quotes To Cover Conveyancing Required
The deal my Broker found for my remortgage would expire in 6 weeks. She did say that the lender provided Free legal but in her experience the deals she had put forward in the past had failed because the legals were so slow. She suggested I use an independent Solicitor that could do my remortgage conveyancing.
To my amazement the internet just like car insurance provides the opportunity to search for conveyancing quotes. Two types of websites exist, the first is where you are free to browse quotations without disclosing your personal details and the other is where you have to enter your details before they display the quotes.
Did I really want to be inundated by Solicitors touting my business, I didn’t and focused on using the website that provided like-for-like quotes without entering contact details.
Use an LTV (Loan-to-Value) calculator
An LTV, also known as Loan to value calculator, can be instrumental in determining mortgage interest rates by assessing the risk associated with a loan. It represents the ratio of the loan amount to the appraised value of the property. The higher the LTV, the riskier the loan is perceived to be.
By using an LTV calculator, borrowers can determine their loan-to-value ratio and understand how much equity they have in their property. A lower LTV typically indicates a lower risk for the lender, leading to more favorable interest rates and terms. Conversely, a higher LTV may result in higher interest rates or the need for private mortgage insurance (PMI) to mitigate the lender’s risk.
Understanding their Loan-to-Value (LTV) ratio empowers borrowers to make educated choices regarding their mortgages. This knowledge can further lead to potential savings on interest payments throughout the loan’s duration.
Much More Than Just Conveyancing
A conveyancing expert offers a valuable service that extends beyond just handling property transactions. They provide a comprehensive understanding of conveyancing costs, applicable not only to remortgages but also to the process of buying and selling real estate. You can conveniently narrow down your options based on factors like price, location, and preferred mortgage lender.
In my suggestion, a skilled conveyancing expert can also guide you in selecting top-notch home builders in the area, like Southdown Homes. This is especially beneficial for first-time buyers, offering crucial insights on whether to buy an existing property or opt for new construction. Furthermore, I can personally vouch for their ability to provide sound advice on the best available financing options.
Focus On The Time It Takes To Get The Job Done
Time is money and that rings true when wanting to secure the best mortgage deal. This happens when you exchange contracts. I was lucky my Broker from past experience was able to advise me what I should do. I listened and now saving each month. I have a portable mortgage where if I move house, I can take the mortgage with me.
What Can I Save On Next?
Now I know how comparison websites work I am going to review my house insurance and my energy costs. I will use websites where I can freely browse to compare. I hate receiving unexpected calls as I normally get called from someone offering a service that I know sounds too good to be true.
You are probably thinking the same!
In Lockdown I made a list all my outgoings. I am on a mission to save
Watch out for my next savings news.
