Tips On Finding The Best Mortgage Deal For You
A mortgage is one of the largest financial expenses you will make through out your life. With thousands of different deals on the market, how do you know which mortgage provides the best deal for you?
Make Use of Comparison Sites
You have probably already visited comparison sites to find a mortgage which is a great place to begin but remember different comparison sites won’t show you the same results so compare multiple sites. You should also do research on the type of mortgage and its features before submitting your application.
Don’t just look at the lowest interest rate when comparing mortgages. There are other variables which can change the overall amount you have to pay back.
Keep an eye on terms such as:
- Deposit size – The more you can put down the lower the interest rate should be
- The standard rate – This is the rate at which your mortgage will default to once your fixed rate has ended
- Length of fixed or variable rate deal – The interest rate will either be fixed or variable and it’s important to get advice on this
- Flexibility – Are you able to pay more some months to pay the balance of quicker without being charged
- How often is interest charged – Is the interest going to be paid daily, month or annually and can an interest only mortgage be cheaper in the long run?
Advice or No Advice
When looking at different providers, you will often find each has a vast array of different types each with different rates which are often confusing. This article will take you through the steps needed to help make the decision on which to choose easier.
Lenders and brokers will look at your financial history and current state so they can give the best advice and find you the most suitable mortgage. If you decide to reject the advice given to you, this is called an execution only application.
Risk of not getting advice
The risks of not getting advice could affect your ability in getting approved for a mortgage and not. You will also have more rights to complain should the mortgage application is taken out be unsuitable for you based on the advice you have been given. In other words getting advice provides you with a level of protection.
If you decide not to take advice then this could impact you by ending up with the wrong mortgage for you current situation which could end up costing you more.
Getting advice from your bank is one of the first places you should go when seeking a mortgage of any kind. They will be able to see your financial situation. They will explain the different mortgages they offer and give you something to compare other mortgages to when making a comparison.
Independent Mortgage Brokers Offer Good Advice
An independent mortgage broker is someone who has lots of knowledge within the mortgage market. They can look at your financial situation and match mortgages which offer the best rates and greatest chance of approval. Some independent mortgage brokers will search from a limited pool of lenders, particular lenders who they have close relationships with or the whole market.
Independent mortgage brokers will probably charge you for their advice and research depending on the type of mortgage and how much value it has. Other independent mortgage brokers will offer a free service but get a commission if the application is successful. These are particularly good as it means there sole purpose is to get you a mortgage with the best rate.
Every independent mortgage broker and mortgage adviser must offer advice when they recommend a suitable mortgage to you. You are protected and can file a complaint to the Financial Ombudsman if problems should arise.
Advantages of a Mortgage Broker are
- They will recommend mortgage that you are likely to get
- They often have exclusive deals with lenders not available by going directly
- Often they will complete paperwork so that the application will be completed faster
- They will do check to ensure you can afford the mortgage
- They will calculate all costs involved, not just based on the interest rate