Switching is the process of replacing your home loan with one another – usually this means paying off one mortgage with the proceeds for the new mortgage and using the same property as security .
This is normally done for the following reasons.
1: to get a better interest rate
2: for more flexibility / or to release equity to do a refurbishment of the property
3: to consolidate debt
The Mortgage Maker philosophy is that a person should review their home loan every 3-5 years, just like they would review car, home insurance to make sure they are always paying the cheapest rate available to them, after all a mortgage is the biggest monthly bill most people have.
At The Mortgage Maker, when we say when we say switching, we mean changing the interest rate, the term of the mortgage, the type of mortgage or any of the conditions attached to the mortgage. Often when people think of switching, they are looking to reduce the monthly payment that they make – this is a perfectly reasonable outcome but is not the only one!
When we look to advise a person looking to switch their mortgage, we also other factors into account not just monthly repayments. For example
No matter what your reasons are, or your current situation, its is good to review your options and The Mortgage Maker are only too happy to advise you on them.