It has become very difficult to find the best mortgage for your situation. Since the start of the recession, 100% mortgage deals are not available from lenders any more, and lenders have become more risk aware. Many mortgage lenders will now normally require a 15% deposit upfront as a minimum, and 30% and over in the case of buy-to-let mortgage deals. If you want to get the best mortgage rates, you should be ready for upfront deposits of 25% or even more.
So more than ever it is important to compare the market as mortgages are offered by thousands of lenders. We give you some tips as a starting point:
1) Do your homework: There are so many different types of mortgages that finding the right mortgage for you situation can be a scary task. The WWW is a good source of information – just enter “mortgage advice” in google.
2) Compare the market: mortgage deals vary a lot from a mortgage lender to another, so it is necessary to compare the different options available. Several comparison sites are available on the WWW, and they are a good option to check out the recent mortgage rates.
3) Understand the different fees: do not be tempted by a low headline interest rate. Very often the mortgage deals with the lowest rates have got higher fees and very often are not the best choice. You must look at the total cost of the mortgage over the entire mortgage term rather than a temporary low interest rate.
4) Seek the advice of an mortgage advisors: a mortgage is probably the biggest investment choice you will ever make, so it is essential that you talk to a mortgage adviser. Only a independent financial advisors can give you unbiased advice to let you select the best mortgage deal for you situation.
5) Do some planning: where can you see yourself in 10 years time? Will you be able to pay for the payments? Never forget that a mortgage is repayed over an extended length, you should therefore plan things ahead, and ensure that the type of mortgage you select for will be in touch with your future situation.
For more information, check out this article: compare the market mortgages