At Vega Lend we’re experts at finding the right solution for each of our clients. We created this page so you can get a head start answering those burning questions before connecting with us. Here are some of the more common questions we encounter...
  • Insuring a mortgage

    Mortgage protection insurance bought as life cover pays out enough on your death to cover the amount of your mortgage. It can also be bought as mortgage repayment insurance, which will cover regular mortgage repayments if you cannot work because of illness or accident. Some policies, such as those offered by a bank, may have restrictions – especially for self-employed people. Advice is available from either an independent insurance adviser or a broker.

  • Reviewing your mortgage

    It is a good idea to check things like your level of repayments and interest rate from time to time. It pays to do it every year or two, or when:

    - A fixed rate loan is about to expire
    - The interest rate on a floating rate mortgage changes
    - There is a big life change on the horizon, such as starting a new job
    - You get a big lump sum such as an inheritance

    It helps to take a moment and ask – are these mortgage payments still as big as I can comfortably afford?  Even boosting repayments by the equivalent of $25 a week may save thousands of dollars in interest, which means you could be mortgage-free months or even years earlier!

  • Ask what changes you will be able to make after the mortgage is set up?

    For all loans, ask whether it is possible to increase regular payments from time to time, pay in lump sums, and pay off the mortgage in full before the end of its term.

    Ask if there is a required period of notice before reducing or paying off the loan with a one-off payment.

    Fixed-interest loans normally convert to a floating rate at the end of the term - ask about taking another fixed term instead at no charge.

    If I buy a new house, can I transfer the existing mortgage?

  • It is important to know just what we can and cannot do with a loan, and what the costs are, before signing up.

    - What fees do you charge?
    - For all loans, ask about application fees and other charges such as a low equity fee.
    - For fixed-interest loans, ask what fees apply if you increase repayments, make lump sum repayments, or repay the whole loan early.
    - What will be the total cost of this loan, including fees and interest, for the sum I am borrowing and the term I have chosen?

    The lender will have to assume about interest rates to do this calculation. But it will show how much you will pay back in total.

    (Note that the lender is required to disclose the fees and interest separately.)

    Also, ask for the total regular payment in a year if the interest rate were to be 1% higher than now. That will give you some idea of the risk if rates rise.

  • Topping up your loan

    If you are having trouble repaying several loans with high interest rates, e.g. a car loan at 15% or credit card debt at 19%, you could investigate paying off these loans by increasing the amount of your mortgage.

    - This can reduce your monthly outgoings considerably. However, the thing to watch out for is whether you end up paying more because the debt drags on for longer.
    - To make this work, you will need to increase your mortgage repayments to keep the payoff date the same as before.
    - If buying a car, for example, the idea is to make the repayments high enough to pay off the cost within the expected life of the car – generally around five years.

  • If I have a problem that I cannot sort out with you, where can I go for help?

    Approach your broker or the lender with a complaint or problem in the first instance. If that does not result in a satisfactory resolution there are independent bodies available which can investigate and help settle disputes such as the Banking Ombudsman and the Financial Services Federation, which represents some non-bank lenders

  • Save money on your mortgage

    - If you can make extra mortgage repayments the greater the benefit in terms of time and money you will save on interest and principle repayments.
    - If you can make repayments more often it is often beneficial as you will be reducing your principle faster resulting in less interest repayments.
    - Always be on the scan for cheaper interest rates. Your broker can assist you with this as they have an intimate knowledge of the market.
    - Seek out loans with strong features and benefits that do not cost you anything.
    - Save money upfront by ensuring your broker works hard for you to reduce you interest rate, the lower the better.
    - Save your pennies and the pounds will look after you. Re-directing $100 per month towards your mortgage could save you thousands over the lifetime of your loans.
    - Set up your lending repayments to coincide with salary or wages.
    - Continue to reassess your loan regularly, by reviewing your loan regularly you could save thousands over the lifetime of your loan.