Landlords, be sure to check your mortgage deal

The latest data and analysis highlighted failing to switch mortgage and lapsing onto their lender’s Standard Variable Rate (SVR) has seen the average landlord hit with £2600 a year in extra interest.

According to the study, which looked at 16 major UK lenders, analysed the jump in interest charges from each provider’s best two-year fixed rate deal to their associated SVR, which a borrower is typically transferred to once their introductory period comes to an end.

Across the UK there are far too many borrowers currently on an SVR, who could collectively save £5.3 billion a year by switching!

One reason why a borrower may lapse onto an SVR is simply that they weren’t aware that it was time to switch until it was too late. Mortgage borrowers, one in five (21%) said they couldn’t remember the last time their provider contacted them about their mortgage, while almost twice as many (37%) stated that their lender or broker doesn’t do enough to keep them updated.

In addition, half (51%) didn’t understand terms included in letters they receive from their lender. Worryingly, of this group, a quarter (24%) ignored these terms and only read the remaining parts, while 16% stopped reading completely when they reached a section they didn’t understand.

A mortgage for a landlord is likely to be the most expensive monthly commitment and therefore vitally important to be cost effective. If you are confused with the mortgage plan you have do get advice as soon as possible, failure to do so could be costing you thousands.

If you would like to discuss your current mortgage or require a new or re-mortgage please do make contact and one of our qualified advisers will be happy to assist.