With the current situation there may be a number of people with more time on their hands than they would otherwise have. And there may be a number of those people who are looking to reassess their mortgage options.

Before going to a broker (who will most likely NOT be whole of market — and be more expensive due to fees etc) here are some things to consider which may help you make your own choice and save you some money:

  1. What is the purpose of your mortgage? Is it an investment or to live in. The question here is why do you need the mortgage which helps solve the questions which follow
  2. What about any exit fees? if this is an investment and you plan to sell the property, it is key that you get a product with no exit fees as this will really hurt your profit margins
  3. Where do you think interest rates will be at the end of your desired mortgage fixed term? Say the fixed rate is 3% – do you think the rate in 3 years is going to be more or less than this? If more – then opting for a fixed rate would be better. If less, then opting for a variable rate is better. This is because the variable rate will allow your monthly amount to reduce as the base rate goes down – but it could also go up. The fixed rate protects against any increase.
  4. What is the term you can have? This is really age dependent – but also depends on how much / how quickly you want to pay off your mortgage. Longer terms protect your cashflow now but mean you’ll pay more in interest over the lifespan of the product.
  5. Does your existing lender offer a quick process to remortgage? Many have an online portal which you can use to remortgage your property / home. This is cost effective as it saves on the valuation fees.
  6. What is the value of your house now? Do not just put in the value you purchased it for — at the very least increase it with the HPI (house price index) and get your LTV lower. The reasons for this are two fold – you automatically create equity but more importantly you can access the lower lending rates available to those with a lower level of debt.
  7. Is there an increase in equity that you can use elsewhere? If your house value increases then you may want to refinance and draw some money out of your home.

The above is a good checklist – but remember to always check the rate your broker gets – as you just might beat it…