One could say UK banks are focused
on making profits instead of ensuring consumers get the most out of their
financial products. As some terms and conditions trap UK consumers into an
interest-only mortgage with a very high rate, only re-mortgaging becomes the option
to lower the fees.
Some UK banks have these
terms and conditions:
A customer with an income of
£75,000 or a joint £100,000 annual income could change their interest-only mortgage
rates smoothly.
Initially, your bank could
refuse your request. But look for the following clause in your terms and
conditions.
“Banks could make a decision on interest mortgage rates should they find
the customer satisfactory in fulfilling the requirements needed.”
Or something like that.
If banks ignored this instance,
you could talk to them. Never settle for anything less and never let your
bank decide. Make sure that you feel uncomfortable with your current
interest-only mortgage rates.
Remortgaging, which puts the
interest at a higher rate for your mortgage, has some advantages. It reduces
your taxes yearly. Think about that. But if you’re decided to lower the rates on
your interest-only mortgage, then whichever works for you is better.
Just make sure to avoid the
trap. Read your terms and conditions thrice and avoid giving the bank the final
decision.
