How often should you examine your mortgage arrangements?
While the vast majority of people in the UK sign up to their mortgage agreement and leave it to run its full term we are starting to see more proactive moves from those looking to cut their mortgage obligations for the future and take advantage of short-term interest-rate movements. The government investigation into the mortgage sector just a few years ago severely curtailed the practice of large penalty fees and massive set-up costs which has ultimately opened up the opportunity for more and more people to remortgage.
However, there is no simple answer as to how often you should review your mortgage arrangements because ultimately this will depend upon your personal circumstances, the value of your property and more importantly interest rates at the time. There are still many people in the UK who would have locked in their mortgages at in excess of 5%. Many of these people could benefit from taking professional advice about a possible remortgage although there are some, due to their personal circumstances, who have no option and need to run with their existing arrangements.
You should always consider your overall financial well-being on an annual basis and where money can be shaved off in the short, medium and longer term it is worth taking advice as to whether this is the correct route. However, taking a short-term gamble which could ultimately prove very costly in the long-term is not what we are talking about.
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