Are you a prisoner to your mortgage?
Are you a prisoner to your Mortgage?
Each year, hundreds of thousands of consumers purchase their homes with a mortgage or re-finance existing mortgages.
Mortgage debt now accounts for over 80% of total UK household liabilities, so choosing a mortgage is an important financial decision that can be difficult to get right.
The mortgage market today works well in many respects though it is very different to how it was before the financial crisis. This reflects both the immediate market reaction to the crisis and the regulatory response.
Most importantly, engagement is high and consumers are getting mortgages that are suitable and affordable. However, there are limitations to the effectiveness of the information and tools available.
Many consumers miss out on cheaper arrangements that are just as suitable. There is also a small number of consumers on a relatively high reversion rate (the interest rate payable once an introductory rate ends), who are up-to-date with their payments, but unable to switch.
For many this is due to changes in affordability requirements following the financial crisis, though there are also others who are unable to switch for different reasons. These customers are often referred to as ‘mortgage prisoners’ by the FCA.
Here at Buckingham James Financial Services, we want to help customers’ to identify at an earlier stage the mortgages for which they qualify.
We also want to see a reduction in the barriers to switching for those who are up-to-date with their payments and not seeking to borrow more.
This is all part of the reason why you should choose to work with an Independent Mortgage Broker like us at Buckingham James whose aim is always to ensure customers’ get the very best value and most suitable mortgage adv