On average, a mortgage lasts for at least 25 years, meaning repayments can take up a significant proportion of someone’s life. A recent analysis by Legal & General Mortgage Club has highlighted how many borrowers aged 55 or over are potentially missing out on the best mortgage deals.
More than half at risk
The research has revealed that thousands of older borrowers are at risk of missing out on savings of £3,200 every year. It appears that 52% of borrowers who are aged 55 or over did not seek out professional advice and guidance when it came to deciding on a mortgage product. As a result, more than half have ended up on a variable product. Which means losing out on fixed rate deals that could be more competitive.
More flexibility but more expensive
It’s true that variable rate mortgage deals can offer borrowers more flexibility, as the interest rates will rise and fall in line with the Bank of England’s base rate. Of course consumers will need to be confident that they can afford the repayments when rates are high as well as benefiting when they’re low. Some options, such as a lender’s Standard Variable Rate (SVR) can typically be a more expensive way of borrowing.
The research showed that someone who was on a typical SVR of 4.89% could make potential savings of over £3,200 annually. Simply by speaking to an experienced mortgage adviser and switching to a competitive two-year fixed-rate deal at 1.45%. This is based on someone taking out an 80% LTV (loan-to-value) mortgage on a property that’s worth £240k.
Highly competitive
The mortgage market is going through a highly competitive period, with some great deals on offer. However, trying to navigate all the options out there; from fixed rates and variable rates, to mortgage terms and repayment charges, can often be challenging.
Unfortunately, older borrowers are statistically less likely to have sought out advice on their last mortgage deal. Leaving them missing out on extra savings during a time in their lives when they are having to save wisely for retirement for example.
Whether you’re aged 55 or above, or you’re a younger first time buyer, seeking out the help and guidance of a professional mortgage broker, or independent financial adviser who specialises in mortgages can be invaluable.
At TaylorMade, we have access to a wide selection of lenders and can liaise with them on your behalf to find you the right mortgage deal. We’ll guide you through every step of the process, right through to completion. We even give an annual review to ensure your current mortgage arrangements remain the most suitable.
Please get in touch with our expert mortgage broker teamat TaylorMade today.
