Low mortgage rates
Over the past five years mortgage rates in the UK have dropped to a very low level. Gone are the days when people had to struggle with mammoth mortgage repayments at high interest rates of 10% or 15% as was the case in the late 80s and early 90s. Instead the low but increasingly stable base interest rate together with strong competition in the mortgage loans market means that mortgage rates look like being pegged at around 4% to 7% for quite some time.
Yet, despite all homeowners in the UK benefiting from low mortgage rates, many continue to spend £100 - £200 more on mortgage repayments than they should do each month out of no choice of their own. Moreover, a large proportion of those homeowners who are paying too much do not realise how easy it is to arrange a new mortgage loan at lower rates, and thus reduce their monthly repayments.
How to reduce monthly repayments on your mortgage with low mortgage rates products
The majority of mortgage lenders now have a presence on the Internet, as do a number of specialist mortgage providers some of whom operate exclusively in cyberspace. This makes the job of finding and accessing low mortgage rates products very easy indeed. In fact, many mortgage companies have links to online application forms and may even award a special low rate discount just for applying online!
Portal sites and specialist sites that cater for UK mortgages are some of the best places on the Net to find mortgage companies and information on mortgage rates. Several sites publish regular tables on mortgage providers so you can find a low rates product to suit your needs, as well as mortgage loan calculators to compare the actual costs of each mortgage deal on offer.
For the best chance of reducing your monthly mortgage repayments look for mortgage products offering low discounted rates with minimal tie-ins or early repayment charges. You are most likely to find the best deals on discount, capped and fixed rates mortgage products. If you are on a standard variable rates product at the moment you could reduce your interest rates by 2% - 3% by simply moving your mortgage onto a new deal with a different provider.
How much does it cost?
Moving your mortgage to a new product with low mortgage rates does attract fees. There are valuation fees to consider as well as application fees and loan arrangement fees, which can easily add up to £1500 or more. If you want the best low mortgage rates deal look for mortgage providers that offer to help you with the cost of these fees and then add the remainder of the fees to your mortgage balance. If you're reducing your mortgage rates by 2% or 3% then you'll easily recoup these costs inside of a year.
To continue saving hundreds of pounds on your mortgage repayments you'll need to keep going through this process again and again each time any introductory low rate you are on expires. That is why it is important to choose a mortgage where the costs of closing it in favour of a different mortgage product are low or non-existent.