Buying a home is likely to be the biggest purchase you’ll ever make, and the mortgage deal you choose could make thousands of pounds worth of difference.
Mortgages can differ in many ways, making it hard to compare the different products available and make a decision that is right for you and your situation. We have put together a guide of 5 key things to consider for a better mortgage deal.
1. Look at comparison sites
As a mortgage is likely one of your most significant financial commitments, it is imperative to ensure that you are getting a mortgage that is right for your personal circumstances. Comparison sites are a great starting point when trying to find a mortgage that is tailored to your needs. You can use a comparison site as part of your early research. They can help you understand in depth what type of mortgages are available for you and what type of product may meet your criteria.
Remember, not all sources will give you the same result, so make sure you look around to get a good understanding of the products out there. Once you have looked at the different mortgages available to you, it could also be a good idea to do some research into the lenders, type of products, and their features (see our guide to the most common types of mortgages). A mortgage adviser will then be able to help you with the next steps.
2. Comparing mortgage deals by interest rates
The interest rate on your home loan is one of the most important factors to consider when comparing mortgages. It can make a huge difference to your monthly and annual payments. As there are a vast amount of interest-rate options on the market, it’s important to do your research to find the best rate available.
3. Understand your Mortgage Fees
There are a number of fees and charges that come with taking a mortgage out. These fees can make a big difference to your overall product, and how much you pay during the process of taking out a mortgage. Since 2016, mortgage lenders have had to include any mortgage-related fees as part of the Annual Interest Calculation.
Mortgage-related fees could include mortgage broker fees, valuation fees, arrangement fees, early repayment fees and more.
How much fees cost will depend on numerous factors, such as, your personal situation or the mortgage product you are applying for, and the lender you choose. Not all lenders will charge each type of fee, so it’s important to shop around and do your research on the products available.
Other mortgage-related charges, which are more personal costs, could include, moving costs, stamp duty and legal and survey fees. The amount you pay for these charges will differ for each circumstance, and are less associated with lenders themselves, and more to do with the service providers you choose.
It’s important to remember that lenders may use different terms to describe their fees, so make sure you thoroughly check your fees and understand what they all mean. Finally, when comparing mortgage products, add up all the charges over the length of the mortgage deal, as well as calculating your monthly payments.
4. Listen to the Customer Service and Reputation of Lenders
Despite the financial attributes to consider when finding the best mortgage deal, it’s important that you consider the quality of the lender behind the deal.
Low interest rates and reduced fees are great, but if these benefits come from a lender who won’t provide you with a quality service, is the financial gain worth it?
5. Consider using a Mortgage Adviser
A mortgage adviser is a person or company that can be hired to advise you and review the mortgages available to you based on your personal situation. They can also arrange a mortgage between you (the borrower) and a mortgage lender.
Mortgage advisers can help navigate you through every stage of finding and applying for a mortgage which will save you time and stress as they will handle the whole process for you, from searching for a deal, to applying and communicating with the lender on your behalf. They are experts in the mortgage market and will have experience with a vast majority of lenders, so can therefore recommend deals that suit your personal circumstances.
It’s important to remember that you can choose a whole-of-market-adviser, and they will be able to assess every available product on the market. They can therefore recommend the cheapest or most suitable option for you. Mortgage advisers aren’t always free, and they will often charge a fee for their services. For more information, see our free guide.
B Mortgage Services are committed to providing you with straight forward mortgage advice to make the process as smooth as possible. Get in touch today so we can help you.
Your home may be repossessed if you do not keep up repayments on your mortgage.