Great opportunities exist for switching to a cheaper lender, provided you meet current lending criteria.
The criteria are typically as follows
- Loan to value up to 90%.
- Normal lending criteria apply regarding security of employment, well-managed current accounts, and good credit history.
- As a general guide, the value of the new mortgage should not be more than four times your gross income.
Mortgage protection insurance
Your mortgage protection insurance will need to match the planned amount and term of the new mortgage. Sometimes your existing policy won't meet the conditions, and a new plan will have to be put in place prior to drawdown.
General mortgage warnings
- If you consolidate debt, the new loan may take longer to pay off than your previous loans. This means you may pay more than if you paid over a shorter term.
- Mortgage terms should be kept as short as possible, consistent with your repayment means.
- Your home is at risk if you do not keep up payments on a mortgage or any other loan secured on it.
- Variable rate loans: the payment rates on this housing loan may be adjusted by the lender from time to time.
- You may have to pay charges if you pay off a fixed-rate loan early.
- Before fixing your rate, check what rate will apply to your loan after the fixed-rate period expires.