Choosing your mortgage customer service and reputation do count.
Below is a MRR and PLR article in category Finance -> subcategory Mortgage.
Choosing Your Mortgage: Why Customer Service and Reputation Matter
Summary
A recent poll by moneyfacts.co.uk reveals that 18% of people have switched mortgage providers due to poor customer service, while 28% have avoided certain lenders based on a friend's negative experience.
Article
Switching mortgages might seem daunting, but the potential savings often make it worthwhile. Many avoid doing so until they face issues with their current lender, but it's beneficial to consider switching sooner.
Before changing mortgages, check for any penalties associated with leaving your current deal. Many mortgage agreements have lock-in periods, especially fixed-rate ones. For example, a five-year fixed-rate mortgage may impose hefty charges if exited early, sometimes amounting to thousands of pounds. Even after the initial period, some mortgages continue to carry exit penalties. Consult your lender to understand these costs.
Upon the expiration of an initial mortgage term, borrowers often transition to the lender's standard variable rate (SVR), which tends to be higher. Currently, the average SVR is around 6.3%, but more competitive rates under 5% are available. For a £150,000 mortgage over 25 years, the difference between a rate of 6.3% and 5% translates to monthly savings of £117.26, totaling £1,407.12 annually.
When selecting a mortgage, consider factors such as term length, rate type, deposit size, insurances, and fees. For more guidance, check out our "Mortgages: Things to Consider" guide.
Choosing a mortgage provider with a strong reputation and excellent customer service is crucial for a smooth experience. Don’t wait for issues to arise?"explore options and potentially save significantly by switching to a better-suited mortgage.
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