Avoiding the Dreaded Standard Variable Rate - Final Word!
At the moment there are no standards imposed on the mortgage industry for the time to turn around a mortgage application, though the Council of Mortgage Lenders think that most can be turned from applications into offers within two or three weeks.
If you go through a broker, it’s always worth asking them about the turn around times of the different lenders as they'll be reluctant to recommend lenders with slow turn around times as they stand to lose commission too if the deal takes so long you decide to go to another broker (or in the case of new house purchases, you lose the house you wanted to buy!)
So, the message is simple - have a diary system that tells you two months in advance when your mortgages are coming to the end of their discount period – and start shopping around (and making applications) right then.
Alternatively, if you are lazy like me, just opt out by getting a lifetime or long term base rate tracker where the interest rate is reasonably good.
OK, it may not be as good as some special shorter term discounts but at least you can forget about having to remember to re-mortgage to keep off the dreaded standard variable rate every few years. Back to main site: www.lettingfocus.com
Copyright: David Lawrenson 2007
If you go through a broker, it’s always worth asking them about the turn around times of the different lenders as they'll be reluctant to recommend lenders with slow turn around times as they stand to lose commission too if the deal takes so long you decide to go to another broker (or in the case of new house purchases, you lose the house you wanted to buy!)
So, the message is simple - have a diary system that tells you two months in advance when your mortgages are coming to the end of their discount period – and start shopping around (and making applications) right then.
Alternatively, if you are lazy like me, just opt out by getting a lifetime or long term base rate tracker where the interest rate is reasonably good.
OK, it may not be as good as some special shorter term discounts but at least you can forget about having to remember to re-mortgage to keep off the dreaded standard variable rate every few years. Back to main site: www.lettingfocus.com
Copyright: David Lawrenson 2007
This entry was posted by lettingfocus, on
Thursday, February 08, 2007.
