Mortgages are house loans that everyone has to take when buying property, especially for the first time. Most people do not understand that they can enjoy many better, more cost effective mortgage deals if they have the right knowledge. There are many secrets about fixed rate mortgages that can truly serve you well. You can use these secrets to ensure that you enjoy privileges and benefits that are hidden by the mortgage lenders. Here are a few of the important trade secrets:
The most important secret of them all is the availability of secret deals. If you look at the website or promotional material of a mortgage lender then you will only see a number of payment plans published on them. If you believe that you have a good credit history and especially have an active account in a bank, then you can call their customer services and ask the bank if you can have an improved mortgage offer.
You will be amazed to find that more often than not, the bank or other lenders will offer you a better deal according to your history with them. You will be able to save some money when compared with the advertised plans. You may get a slightly lower interest rate or the bank may remove the processing fee for you.
Paying Lower Interest
Most lenders move their borrowers to a package where they have to pay the interest according to the standard variable rate of the bank. This is usually a fluctuating rate, which is quite high when compared with the standard interest rate. Many people do not realise is that they can ask the bank to remortgage their remaining balance in a better payment option which will have a lower interest rate.
Lenders earn extra money when they quietly move borrowers in their standard packages after the conditions of a specific deal have ended. Active borrowers observe this and quickly select another payment option which is cheaper.
Most borrowers do not realise that they will have to pay extra money if they decide to sell the current property and move to another house. There are many portable mortgage loans that do not have such penalties. You should always select a mortgage that can easily be rescheduled with another property, thereby allowing you to change your house while a long term loan is continued.
Early Repayment Charges
Many people do not realise that they have to pay a hefty surcharge amount if they want to end their mortgage earlier. A secret is to always find about the amount of extra money that you will have to pay in case you want to pay back the loan from an amount that you may have gained from an unexpected source of income.
This early repayment needs to serve you better and therefore; banks often have an administrative fee attached with it. You should select mortgage deals where this fee is either very small or there are no limitations on paying back your loan earlier.
These are just a few secrets that can help you get a better deal if you are looking for fixed rate mortgages. These are the common type of mortgages and the information shared here can help you save considerable amount of money.