With only six weeks to go until Christmas many people are finding that their money will not quite stretch to buy that special present, or afford the Christmas they have been hoping for.
However, as house prices continue to rise many homeowners have found themselves sitting on a nest egg, as equity in their property rises. This is an ideal time to encourage clients to make the most of their assets while taking advantage of the lowest interest and mortgage rates in years by remortgaging to a better deal.
Many borrowers are still spending money unnecessarily as they are signed to mortgage products that do not reflect the current low rates. For example, some borrowers are still paying up to 10% interest on their mortgage.
The main sticking point is still reassuring clients they are making the right decision about their lender and product, because taking out a mortgage is always going to be such a huge decision.
The decision-making process often involves much searching to find the best deal. Often the client can be satisfied they have found the best deal and that the lender gives good service, but they are still often reluctant to change their lender for a better deal because they do not want to go through the apparent hassle and cost.
These customers do not fully understand the benefits they could reap if they were to switch to a more suitable product for their needs and need a more thorough explanation of these benefits.
For example, by remortgaging, customers could inc- rease their mortgage debt and make a monthly saving.
A customer with a £90,000 mortgage at 5.95% over 25 years and a £10,000 loan at 8% over 25 years would be making a monthly payment of £661.99.
However, if they were to remortgage, increasing their loan size by £100,000 to pay off their loan, their monthly saving would be significant.
All customers are different, but whatever it is that helps them realise they would be better off by remortgaging, if they act soon the client could soon be sitting back and enjoying their ideal Christmas.
Neena Kithoray is senior product manager at Bristol & West Mortgages