Choosing a Mortgage
Mortgages are available from numerous providers, including high street banks, building societies and online lenders. Interest rates and terms and conditions vary widely, so it is worth comparing a range of different mortgage deals.
The internet makes it easy to compare quotes from different mortgage providers. It is often beneficial to begin your search online; you can quickly develop an idea of the types of mortgages available and interest rates that apply. Most lenders have an online enquiry form and search tool, which allows you to enter how much you would like to borrow, and over how long you would like to repay your mortgage. These tools are for comparison purposes only, and are not designed to give you an accurate representation of the total cost of a particular mortgage deal, nor of the exact interest rate you would be offered.
After you have made initial online enquiries, it is useful to visit a bank or building society's local branch. Here, you will be able to discuss your personal requirements with a mortgage advisor. It is sensible to have some idea of the type of mortgage and type of interest rate you are interested in, as this will allow you to ask more specific questions and use the time with the advisor more effectively. Bear in mind that the advisor will only be able to give you advice on their own products and services: ensure you compare a number of mortgage deals from several different lenders.
Do not underestimate the value of personal recommendations. Ask family and friends who their mortgage providers are, if they would recommend them, and what problems they had with their lenders. However, remember that a mortgage suitable for your family member or friend may not offer you the best deal.
Mortgage Broker
A mortgage broker is a person or organisation who can offer advice on choosing the best mortgage deal. They can provide comparison services and help you find the right mortgage. Mortgage brokers are either able to offer a broad range of mortgages from a number of different providers, or a limited range from a few lenders. Before choosing a mortgage broker, ensure you are aware of what they will be able to offer you: if they only have a limited range of mortgage deals to choose between, you may consider finding an alternative
In some cases, a broker is able to find a deal that was previously unavailable to you and negotiate more broker who can offer you a broader comparison service. favourable terms on your behalf. Conversely, some promotions are only available from mortgage lenders themselves, which means that a broker may not always be able to offer you the best money-saving deal.
Remember that the advice a mortgage broker offers you may be influenced by their commission. This commission is paid by certain mortgage providers if a broker sells one of their mortgage deals. It could mean that a mortgage broker is biased towards one particular lender. Ensure you consider the mortgage deal carefully before signing the agreement.
Choosing a Deal
A mortgage is a huge financial commitment and finding the best deal for you may take time. Before making a final decision, ensure that you can afford the repayments, that the type of interest rate suits your requirements and that the type of repayment plan will ultimately repay your mortgage by the end of its term. Also ensure that you compare early repayment charges, and choose a suitable, affordable mortgage payment protection insurance to help reduce the overall cost. Lastly, consider the additional costs involved in buying property, such as mortgage fees, legal fees, stamp duty land tax and compulsory insurances.
