Paying less for your mortgage
vixx takes care of it.

Mortgage update

Often, your mortgage is your biggest monthly payment. If you can reduce your monthly charges, you will save a lot of money which you can spend on more enjoyable things. Did you know there are a lot of ways to make this happen? We have listed a few.

If you took out your mortgage a while ago, you are probably able to make some considerable savings. The interest rates kept going down in recent years. In 2010, you paid approximately 6% interest on money you borrowed. In 2021, you pay approximately 1%. Using this to your advantage can save you a lot of money.

1. Interest rate averaging

The easiest way to pay less for your mortgage is so-called interest rate averaging. You agree to average the difference between the current interest rate and the  interest rate applicable when you signed your mortgage. You pay a fee to the bank to cover the period when you were supposed to pay a higher interest rate. This fee is part of your monthly charges. As a result, you are saving instantly on your mortgage without having to pay a hefty fine in one go.

Example

Interest rate 2014: 4%. Interest rate 2021: 1%. After interest rate averaging, you pay 2,7%. In case of a €300,000 mortgage, this will make an annual difference of €3,900. That’s an instant saving!

2. Transferring mortgage

Interested in an even lower interest rate? You could transfer your mortgage to another bank. You redeem your existing mortgage and we find the best deal for you out there. The only downside is that you need to pay a fee to your existing bank. They are obviously not happy about missing out on your payments. However, the fee is tax deductable and you are often able to finance the interest in your new mortgage. This enables you to lower your monthly charges even further, however, you will have to spend some of your savings or increase your mortgage.

Vixx can make a non-binding calculation for you.

Transferring Mortgage

3. Extra payments

Paying more money for lower monthly charges? It might sound weird, but it is quite a sensible thing to do. If you make a big payment on your mortgage, you pay less interest over the remainder of your mortgage. You won’t receive any interest on your savings account, or you might even have to make an additional payment! Paying off your mortgage saves on interest. The return on your savings is low, but it is a safe move. Whether this is the right decision for you, is something to discuss with a consultant from Vixx.

Vixx Mortgage Update®

4. Reduction of risk premium

You pay the bank interest on your mortgage as the bank is running a risk. The higher your mortgage compared to the value of your property, the higher the risk the bank is running. Your interest will be higher if the bank is running more risk.

As a lot of proporties have increased in value in recent years, a lot of people are able to save on their mortgage. A consultant from Vixx will be able to tell you if you can benefit from this.

5. Fixed rate period expires

Is your fixed rate period expiring soon? The bank will automatically send you a new proposal. Don’t agree with this at once! You could also transfer your mortgage to another bank. Vixx can look into the best deal for you, which can save you a lot of money in the short term and long term.

Example A:

Mortgage: €300,000
Interest rate: 1.4%
Interest over mortgage term: € 67,112.18

Example B:

Mortgage: €300,000
Interest rate: 1.1%
Interest over mortgage term: €52,078.22

Find out what the best option is for you.
The Vixx Mortgage Update

As you have read, there are often different options on how to save on your mortgage. It is sensible to get an experienced consultant to take a look at your situation. Vixx knows exactly what the different options are and can find the best solution for the challenges you are facing. We are happy to help!

Using the Vixx Mortgage Update, we can calculate what the best solution is for you. Obviously free of charge and non-binding.

About Vixx Mortgage Update
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