Why you can’t afford to ignore your annual mortgage statement

January is often the month when many of us decide to sort out our finances, and reviewing your mortgage should be top of the list. Fortunately, it’s also the month that many annual mortgage statements will be landing on doormats, making it easy to check your current rate and how much you’re paying. Some lenders send out their statements at different times, depending on when the mortgage started, but many do so at the start of the year. Check with your lender if you’re unsure when you should receive yours.What’s on my annual statement?Your annual mortgage statement will tell you what type of mortgage you have, for example, whether you’re on a fixed or a discounted deal, and the interest rate you’re currently paying. It shows how much of your mortgage you’ve paid off over the year, including any overpayments you’ve made, and your repayment method, for example, whether you’re paying back the interest only, or both the capital and interest. It also tells you how much longer you’ve got to pay off your mortgage, and how much you still owe overall. Any early repayment charges will also be outlined, so you’ll be able to see what costs could apply if you remortgage to a different deal. Are you paying more than you need to?If you’re not locked into your current mortgage deal, compare the rate you’re paying to some of the top mortgage deals shown on our best buy tables and see if you could cut costs by remortgaging. If you’re not sure which deal is right for you, or whether you’ll be eligible to apply, talk to one of our advisers who can recommend the best deal for you based on your individual circumstances. It’s still worth reviewing what else is available even if you do have early redemption charges, particularly if they are due to expire soon. You can sign up to a new mortgage between three and six months in advance, which means you may be able to move directly from your current deal when it finishes to a new one.