Seven Tips For Choosing A Mortgage

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There are a huge number of mortgages on the market so here are my tips for helping you to choose thr right one.

1) Shop around – don’t just take the first one that comes along. Make a bad choice can cost you thousands in the long run.

2) Don’t be fooled by a low-sounding interest rate. This is the headline rate and could come with hefty tie-ins or perhaps the interest is calculated annually rather than daily. A much better gage of a mortgage’s competitiveness is to look at the APR.

3) Watch out for redemption charges. If you have a mortgage that is fixed for a certain length of time and you want to exit the deal before the time period has finished youmay face heavy penalties. Also check that the mortgage is portable. That means you can take it with you if move without incurring charges.

4) Avoid over-hanging exit penalties. These are charges that apply even after your fixed or offer period had finished. Some of these charges apply for as long as two years after your ‘deal’ has ended.

5) Get several quotes. I would recommend checking out direct lenders such as ING to see what they can offer you and then taking that to a financial advisor to see if they can come up with something better – you may be pleasantly surprised.

6) Make sure your independent financial advisor is actually independent and not tied to a particular lender’s products. Mortgage advisors incorporated with estate agents will often be tied agents. It may seem convenient to get a mortgage through the same office as your home purchase but you may not necessarily end up with the best deal.

7) If posssible get a mortgage in principle offer. A mortgage in principle is a conditional offer made by a mortgage lender. Having a mortgage in principle means that assuming the information you have given is correct – the lender will “in principle” give you the mortgage you have discussed with them. This can help speed up the process of buying your property and give you an edge over other interested parties.

If you’re looking to get a mortgage visit Find Mortgage Deals for the latest news and information on all kinds of mortgages from fixed mortgages to buy to let mortgages

 

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