ONE Martin Lewis fan saved an eye-watering £2,100 on their mortgage with just a simple check – here’s how they did it.
The nation’s favourite finance guru saved one of his readers thousands as homeloan rates keep rising.
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But his advice isn’t a secret and could save you big bucks too.
The lucky homeowner followed used the mortgage tool on the Money Saving Expert (MSE).
They took out a deal with their existing lender, which is known as a product transfer.
The deal saved the MSE fan £175 a month which adds up to an impressive £2,100 a year.
While this deal can be far cheaper than remortgaging with a new lender, check Martin Lewis’ nifty tool to be sure you’re saving money.
The reader said: “Just went for a new deal with my existing provider at the end of a five-year fix, was able to save £175/month – same terms. I used the mortgage tool on MSE.”
Tips from the money expert are more in demand than ever as fuel and food prices rise along with mortgages.
Just last week, the Bank of England hiked interest rate for the fifth time in a row.
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The rate is built into the cost of mortgages so those on most mortgage rates will see an increase.
Tracker or standard variable rates (SVR) will automatically go up with the Bank of England’s interest hike, as will new fixed deals.
Luckily, those with existing fixed rate deals will avoid seeing this cost climb from the base rate changes.
Yet lenders have been quietly pulling cheap deals over the last few months in anticipation of more rate hikes.
The latest MSE email said that “today’s cheapest fixes are three times higher than last October’s”.
And added that those on tracker or SVR homeloans will “soon see costs increase by roughly £12/month per £100,000 of mortgage debt”.
To cut costs where you can, Martin Lewis stepped in with some precious advice on remortgaging.
Ask for your existing lender’s current deals
Remortgaging with your current lender – or a product transfer – could be an option.
There will probably be less paperwork and lower fees, so don’t rule it out.
Compare the cheapest deals
Two minutes could save you hundreds of pounds if you check out the MSE Mortgage Best Buys comparison.
One savvy user saved enormously after checking out Martin Lewis’ handy tool.
He said: “We remortgaged in April and our monthly payment dropped from £900 to £750.
“Was our first remortgage as we bought our first house 2 years ago. Really happy. Your guide really helped me understand everything.”
Compare offers to your current deal
There are a few calculators out there to compare different costs but MSE offers the Ultimate Mortgage Calculator online.
Use a mortgage broker to make things easier
A good mortgage broker can help you out with information that’s tricky to find out yourself.
Their advice can give you an idea whether you’ll be accepted and how much you’ll be able to borrow after lenders do credit and affordability checks.
Martin Lewis in the news
His mortgage advice comes he revealed almost a million pensioners are missing out on up to £3,300 a year.
He urged everyone over the age of 66 to urgently check if they’re eligible for the help or lose out on thousands.
In his MSE newsletter he called it a “national tragedy” so many could be going without the cash they’re owed.
The finance expert also made headlines by warning that households could have to pay another £1,000 extra this winter as energy bills rise.
More than 2Omillion households are on default tariffs which are set to go up in October, he said.
But his advice hasn’t all been bleak, as he also encouraged readers to check whether they’re getting paid more next month.
Martin created a calculator to help you work out if you’re set to get a pay rise within days.
Millions of workers are set to take home more money in next month’s pay packet.
