ARTICLES > Making the Most of Lower Interest Rates.
 |
0800 50 44 44
|
|
|
Making the Most of Lower Interest Rates.
Here’s a few things to remember when it comes to thinking about renewing your mortgage: • Choosing the right term to fix can be a tricky one. Do you go short term at a low rate or longer term at a slightly higher rate that may pay off long-term if rates rise significantly? There is no definite answer to this because no one can accurately predict precisely what will happen in the future. It is a matter of reminding yourself of your goals and the strategy your MortgagePlan gave you to reach those goals. Usually there will be the challenge to repay lump-sums on that mortgage which cannot be done if it is linked in for too long. • The most effective way of paying off your mortgage quickly and saving on interest, is to make those lump-sum payments that are included in your MortgagePlan – it takes discipline though. A way that takes less discipline and is almost as effective is to increase the size of your repayments. So, when you go onto a lower interest rate, request that your repayments stay the same. Any amount that you pay, over and above what the bank sets, will come straight off your principal. • Did you know: in general terms for a long-term mortgage, any amount you pay off on your principal today will, over the course of the loan, save you four times that amount in interest! What this says to us is, when it comes time to refix your loan, revisit your goals.
|
|||||||||||||||||||||||||
