You did it. You signed on the dotted line, got the keys (or secured your new deal), and your mortgage is live. That's a huge step, and you should feel good about it. But here's something most people don't realise: getting your mortgage is just the beginning, not the end. The decisions you make in the weeks and months after completing can have a real impact on your finances, sometimes worth thousands of pounds.
Bob was recently featured in The Mirror discussing exactly this topic, including a warning that could save new mortgage holders thousands. This post expands on that advice in full.
Right Now: Mortgage Rates Are Falling
Before we get into the five things you should do, there's a timely market update that directly affects anyone who's taken out a mortgage recently.
Speaking to The Mirror, Bob highlighted that some of the UK's biggest lenders have been cutting their rates:
"This past week alone, we have had a number of major high street lenders (such as HSBC, Halifax, TSB and Santander) reduce their rates, in some cases by quite chunky amounts. Though anything could happen when Trump is at the helm, there is cautious optimism that we may be past the peak for mortgage pricing."
Bob Singh, Chess Mortgages (The Mirror)
That sounds like good news, and it is. But it comes with a crucial warning that most borrowers simply don't know about.
The Warning Every New Mortgage Holder Needs to Hear
If rates are falling and better deals are becoming available, you might assume your bank will flag it for you. After all, they manage your mortgage, surely they'd let you know?
They won't. And this is precisely what Bob warned about in The Mirror:
"Borrowers think their lender will always tell them if a better mortgage rate has become available, but that simply isn't true. People too often see lenders, especially the high street brands they are very familiar with, as touchy-feely. But that's simply not the case."
Bob Singh, Chess Mortgages (The Mirror)
The reason is blunt, even if it's uncomfortable to hear:
"Lenders are deeply commercial organisations and are out to make as much profit as they can, so why would they tell you that you could now switch to a cheaper rate in their range before you complete? The answer is, almost always, that they will not."
Bob Singh, Chess Mortgages (The Mirror)
The bottom line: If you took out a mortgage in the last month, or even the last six months, and rates have since dropped, you could be sitting on a more expensive deal than you need to be, with your lender under no obligation to tell you. The fix? Check whether better rates exist with your current lender, or let a broker do it for you.
Bob's advice is direct: complete a rate check with your existing lender, or get an independent broker to do it on your behalf. That's exactly what we do at Chess Mortgages, at no cost to you.
1. Know Exactly What You've Got
Sounds obvious, right? But you'd be surprised how many people don't fully understand the terms of their own mortgage. Before anything else, make sure you're clear on the following:
- • Your rate: Is it fixed, tracker, or variable? If it's fixed, when does it expire?
- • Your term: How many years is your mortgage running over?
- • Your monthly payment: And how much goes to interest vs. reducing your debt?
- • Overpayment rules: Most fixed deals allow up to 10% overpayment per year penalty-free. This is incredibly powerful.
If you're not sure about any of these, dig out your mortgage offer letter or call your broker. If you went direct to a lender without using a broker, give us a call. We're happy to cast an expert eye over your deal at no charge.
2. Consider Overpaying, Even a Little
This is one of the biggest missed opportunities for new mortgage holders.
When your mortgage is fresh, a large chunk of every monthly payment goes towards interest, not reducing what you owe. By making even modest overpayments, say £100 or £200 a month, you hit the capital directly, which reduces the interest charged going forward.
"On a £200,000 mortgage, overpaying just £200 a month could save tens of thousands in interest and take years off your term."
Always check your Early Repayment Charge (ERC) terms first. Most lenders permit up to 10% overpayment per year on fixed-rate deals without penalty. Stay within that limit and you're golden.
3. Don't Forget Protection
Too many people skip this. They spend months obsessing over the right mortgage rate, then give almost no thought to what happens if they can't pay it.
If you die, become seriously ill, or lose your income, who pays the mortgage?
The good news: protection is usually far more affordable than people expect. Life cover, critical illness insurance, and income protection are all worth considering, especially now that you have a significant financial commitment in place.
This isn't about fear. It's about peace of mind. Knowing your home is protected no matter what happens is genuinely priceless.
4. Make a Note of Your Rate Expiry Date
If you're on a fixed-rate deal, put your expiry date in your diary, right now. Ideally, you want to start exploring your remortgage options around six months before your current deal ends.
Why so early? Because you can often lock in a new rate months in advance, protecting yourself if rates rise. And it gives you time to explore the whole market rather than rushing into whatever your current lender offers.
"Rushing your remortgage is how people end up on an expensive Standard Variable Rate (SVR): which can be significantly higher than a competitive fixed deal. Six months' lead time is the sweet spot."
5. Review Your Circumstances Every Year
Life changes. Your mortgage needs can change with it. Maybe you're planning to move in a few years. Maybe your income has grown. Maybe you've had a child and your priorities have shifted.
A good mortgage broker isn't just someone you call once. They're someone who reviews your situation regularly and makes sure your mortgage is always working as hard as possible for you.
At Chess Mortgages, we do exactly that. Many of our clients have been with us for five, ten, even twenty years, because great advice doesn't stop when the mortgage starts.
Regulatory information: Chess Property Services (London) Limited is authorised and regulated by the Financial Conduct Authority (Register No 748976). Registered office: First Floor, 10 College Road, Harrow, Middlesex. HA1 1BE. Registered in England 6575229. Your home may be repossessed if you do not keep up repayments on your mortgage. The information in this article is for general guidance only and does not constitute personal financial advice. Please seek independent advice tailored to your circumstances.