Are you currently tied to a subprime mortgage and facing higher interest rates? It might be time to consider switching mortgage providers for potentially significant savings. Here’s what you need to know about transitioning from a subprime mortgage to a more favourable option.
Eligibility for Switching
Switching to a lower-rate mortgage could be within your reach if:
Loan-to-Value (LTV) Ratio: Your mortgage is 80% or less than the current value of your home.
Improved Credit History: If you had poor credit but have consistently met your mortgage repayments and other financial commitments, your credit standing might have improved.
Established Credit History: Initially, lacking a credit history can be a hurdle. However, a track record of reliable mortgage payments can change this.
Stable Income: A now regular and guaranteed income or an ability to prove your income more effectively than before can also make a difference.
Continuing Your Current Path
If switching isn’t feasible at the moment, focus on maintaining your mortgage repayments and clearing any other debts. Regular saving, even small amounts, can also contribute positively to your financial health. Once your credit history improves and your debts are managed, you could become eligible for mortgages with more attractive interest rates.
Costs Involved in Switching
Be mindful of the costs and fees associated with switching mortgage providers. These might include legal fees, valuation fees, or breakage fees if you’re currently on a fixed-rate mortgage. However, good news is that a number of Lenders do offer cash incentives towards your switching costs. Despite these initial costs, the long-term savings from a lower interest rate can be substantial. Utilise our mortgage calculator to gauge the potential savings from making the switch.
Switching from a subprime mortgage can be a strategic move towards long-term financial savings. It’s about finding the right time and circumstances to make the switch. By staying informed and prepared, you can position yourself to take advantage of lower-rate mortgage options when they become accessible to you.
If you have any questions or need further assistance, please don’t hesitate to get in touch. We’re here to help guide you through your mortgage journey.
If you have any questions or need further assistance, please don’t hesitate to get in touch. At Ezfees Financial, we would be delighted to assist you throughout your mortgage switcher journey. Why not book a comprehensive Mortgage Switcher Consultation with us today via our “Book A Consultation” option on our website. Our Dedicated and qualified Mortgage Advisors will guide you every step of the way.