Explore options to save money

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What are the benefits of shopping around for a mortgage?

Sponsored Content, Noel McLaughlin, of Butterfield Bank, replies:

WITH Jersey house prices at an all-time high, it is important to find a mortgage arrangement that minimises costs with the financial flexibility you need – and shopping around for a mortgage is the best way to do that.

Whether you’re a first-time buyer or looking to remortgage, exploring your options could lead to securing a better interest rate and finding a more suitable product or repayment arrangement, saving you money now and in the long term.

If you’ve started thinking about getting a mortgage, you have probably noticed the conflicting messages about interest rates.

On the one hand, you’ve probably heard that interest rates are rising, but on the other, that rates are still low. In reality, both those statements are true.

Rates are always changing, and at the moment they’re on the up due to inflationary economic pressures. However, if we consider historical rates, they are still relatively low.

Understandably, interest rates are a big consideration for people, given that even slight variations in interest can add up over time.

But while shopping around for your mortgage can help you find the most desirable rate, it shouldn’t necessarily be the sole focus of your search.

Given the long-term nature of mortgages, finding a product that suits your lifestyle and financial situation should be just as important. For example, some lenders offer flexible repayment arrangements such as an interest-only mortgage, while other mortgage products allow you to take advantage of (or ‘offset’) your savings to reduce interest payments. Our Butterfield Lifestyle Mortgage is a great example of this.

Alternatively, your priority may be to maximise your borrowing potential or, given the current upwards trend in interest, you may be looking for a provider that can offer longer-term fixed-rate mortgages of ten or five years.

We understand that the legwork involved in exploring your options can be daunting. Engaging a mortgage broker can help alleviate the admin involved, or you can speak to lenders directly.

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