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Last Updated: Monday, 16 July 2007, 14:08 GMT 15:08 UK
Reviewing your mortgage
It is a good idea to review your mortgage from time to time to make sure that it is still appropriate for you and that it is still a good deal.

At a minimum, you should probably review your mortgage when any special deal - on your interest rate for example - finishes.



You will need to consider:

WHICH TYPE OF MORTGAGE?

You may want a repayment loan where your monthly payments gradually pay off the loan as well as paying the interest.

Or you may prefer an interest-only loan where your payments only pay the interest on your loan.

Or you could opt for a combination of both.

If you opt for an interest only mortgage you will need to think about how you will repay the loan when the time comes.

And you will need to review your arrangements from time to time to make sure that they are still on track to give you enough money to pay off the whole loan.

WHICH INTEREST RATE?

You need to think about whether you want a fixed rate (where your mortgage payments will be the same each month) or a variable rate (where your mortgage payments may change from one month to another).

You will also need to think about how long you want the deal to run for - some last for only one or two years, while others can last for 10 years or more.

HOW MUCH CAN I BORROW?

You will need to think about how much you can afford to borrow now and whether you can still afford the mortgage if your circumstances change (if you are ill, for example) or if interest rates rise.

Our mortgage calculator might help you to do this.

WHAT WILL IT COST TO SWITCH?

You may be able to reduce your payments by switching your mortgage but remember to look at what it will cost you to make the change.

Your existing lender may charge for repaying your loan early or they may charge a fee if you are moving to a new lender.

And the new lender may also make a charge for setting up the new loan.

These charges could add up to more than the amount you save by reducing your monthly payments.

GETTING INFORMATION AND ADVICE

Information comparing the different mortgages on offer is widely available on BBC 2 Ceefax pages 251-254, the internet - eg the FSA's mortgage tables -, and in newspapers and magazines.

If you would like help with sorting out your mortgage, you could think about talking to an adviser.


Useful checklists and information


Handy tools


The BBC is not responsible for the content of external internet sites


Contact numbers and internet links

Financial Services Authority - Consumer Information
Information from the UK's financial services watchdog
Consumer helpline: 0845 606 1234 (call rates may vary)

Council of Mortgage Lenders


The BBC is not responsible for the content of external internet sites


This checklist was developed jointly by the BBC and the Financial Services Authority (FSA), the UK watchdog for the financial services industry. It does not provide financial or other professional advice. If you want advice specifically tailored to your personal circumstances you should consult an adviser.






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