Changing Mortgage

SPRING-CLEAN your mortgage when you change it. Changing deal or lender can trigger other equally important changes. Many people use some savings to clear an extra slice of their debt when they re-mortgage. Others might borrow a little extra for a big home improvement project, perhaps, or to clear other debts where the interest rates are higher. As long as your lender thinks you can afford the extra and your property is worth enough you can normally ask for a little more when you re-mortgage. The money will be paid to you when the deal goes through. But since most of us want smaller rather than bigger mortgages it can also pay to tweak our loans in other ways. If your income had gone up a bit, or if you are moving on to a much better deal and your monthly payments are going down then see if you can shorten your mortgage term. Aiming to clear it, say, two years ahead of the usual 25 can ultimately save you a lot in interest. Look at the Mortgage Affordability calculator at www.thisismoney.co.uk to see what will happen to your monthly payments if you shorten your mortgage term.