09 Feb Your Annual Mortgage Statement
Last month you probably would have received your annual mortgage statement. It’s the piece of paper you get from your mortgage lender that can be a bit depressing, but don’t just file it away – make sure you check through it first.
What does your statement show?
This document contains all the pertinent information about your mortgage such as, your mortgage type, your remaining term, balance and monthly payments. It also shows how much you have paid into your mortgage over the last year and what you’ve been charged in interest.
If you are on a fixed rate mortgage the statement will confirm this and give you the date on which that ends. If you are on a variable rate mortgage it will provide information on your current monthly rate and payment amounts. The statement will carry any other information affecting your mortgage agreement and your payments over the year including over-payments and any penalty charges – should there be any.
How to use this information
Once you have received your annual mortgage statement take some time to check the details are indeed what you signed up for – it’s extremely rare but there may have been an administrative error.
Check your monthly payments and current interest rate – the type of mortgage you have will dictate your rate so, double check that too. If you are not within a fixed rate period you could start to look to remortgage to get the best available rates. Lenders save their best rates for their fixed term customers so locking in for a couple of years could save you money in the long-run.
A number of our clients come to us for a remortgage having paid their lender’s standard variable rate for an extended period of time. If you are one of these people, remortgaging could save you hundreds, sometimes thousands of pounds on your yearly mortgage expenditure. Taking control of the situation is empowering and we’ve found that with the right kind of guidance, our clients have felt more at ease with this complex process.
If you need ANY advice about your mortgage or potentially remortgaging make sure you speak to one of our experienced mortgage advisers. They will be able to access the best deals on the market while guiding you through your options. Even if you have three or four months left on your current fixed rate deal you can pre-empt the end of your term and begin you new rate as soon as your current one finishes.
photo credit: By Antonio Guillem