New tool could help cut your mortgage bills by thousands of pounds per year
Online broker Dashly tracks rates and fees, calculates your property’s value and notifies you of cheaper mortgages - and you don't have to lift a finger
A NEW mortgage platform launches today and it could help you cut your mortgage bills by thousands of pounds per year.
Online broker tracks rates and fees at various banks and building societies, calculates your property’s value and notifies you of cheaper mortgages.
It takes into account set-up fees and early repayment charges, as well as homeowners' unique circumstances such as their mortgage rate, property value, loan-to-value (LTV) and declining mortgage balance.
Dashly will also look for alternative mortgages even if you have several years left on your current mortgage deal.
All you need to do is to supply details of your current mortgage deal and leave Dashly to scour the whole market to check whether there is a cheaper alternative worth switching too.
Dashly automatically updates your mortgage balance, remaining term, LTV and property valuation on a monthly basis.
How to find the best mortgage
FINDING the right mortgage is all about your individual circumstances. Here's some advice on what you should keep in mind:
- Decide what kind of mortgage you want: a fixed deal means you'll know exactly what your mortgage will cost, but if interest rates fall, you won’t see your payments drop. A variable deal means your costs will fluctuate, but only because of economic changes, rather than decisions by the lender.
- Shop around: there are big differences between mortgage deals, so make sure you compare costs. Also check whether there are any cashbacks or other offers. Here websites such as Moneysupermarket and Moneyfacts may come in handy.
- Calculate your total costs: look beyond the headline interest rate and take into account all the fees you have to pay, such as arrangement fees, mortgage valuation fees and insurance fees.
- Consult a mortgage broker: if the flurry of options are confusing, a mortgage broker can help you find a deal that best suits your personal circumstances. Just make sure that you use an independent company or adviser.
In fact, without having to lift a finger or manually update your mortgage data, customers are automatically alerted the moment it is worth to switch to another mortgage.
If a homeowner decides to take out a mortgage found by Dashly, it restarts the mortgage comparison again the next day.
Andrew Hagger, an independent personal finance expert and founder of Moneycomms.co.uk, has conducted a review of the new platform and he is overwhelmingly positive.
He says: Although it may sound like just another traditional mortgage comparison site, “the key difference with Dashly is that it’s not just a one-off comparison and snapshot of rate, fees and potential savings, it’s an ‘always on’ process, continually checking the customer’s mortgage deal against the whole market every day".
“I think once people have used Dashly for the first time they will no longer have the need to visit a traditional price comparison portal again,” he adds.
How much could Dashly save you?
The amount it can save you will vary based on the size and length of your mortgage and your ability to make repayments.
Based on a mock application, a borrower in a three-bedroom house near Birmingham, who took out a five-year fix with Santander in July 2016 over 30 years with a 15 per cent deposit, was able to save £2,355 or £1,229 depending on if the person paid the early repayment charges using savings or added them to the loan.
This was based on monthly payments of £835, a 3.54 per cent rate with three years to run and a £5,257 exit fee.
What customers should keep in mind, is that it is not guaranteed to save money and find a cheaper alternative mortgage.
The outcome depends on a combination of your individual circumstances including the competitiveness of your current mortgage deal, the term left to run and the impact of early repayment penalties.
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