Money: A CHEAPER HOME LOAN IN 15 MINS.(Features)
HOMEOWNERS are paying an average of pounds 400 a year too much on their mortgage because they have not got the one that is best for them.
It would take just 15 minutes to find a new mortgage that would save at least pounds 33 a month, according to HSBC.
A spokesman for the bank said: "By making yourself a cup of tea and sitting down to look at your finances, you could save money.
"People are reluctant to move their mortgages because they think it is complicated, but we've simplified the process."
Here's what you could achieve in 15 minutes.
1-3 MINUTES: Check your current deal. If you've only had your mortgage for a few years you may have cash penalties if you switch.
If no penalties are involved and you are on a lender's standard variable rate (SVR), you are on course to save money.
4-5 MINUTES: Decide which type of mortgage you want. If you want to budget over the next few years and make the most of the low rates around, look at fixed mortgages.
If you think rates may rise, but believe predictions that this won't happen for the rest of 2002, you should look at a discount mortgage which will give you a discount - usually two per cent - off the SVR.
A capped rate will mean that the amount you pay will fluctuate with the Bank of England base rate, but will never go above a certain amount.
A flexible mortgage will incorporate one of the above mortgages, but will have added facilities - you can overpay or underpay, you can take holidays from your mortgage and interest will be charged at a daily rate. …