Finding The Best Mortgage Deals: Your Comprehensive Guide
When looking for an appropriate lender, start off with the following options:
• Visit your bank or building society and see what offers are available; this is particularly useful if you have an existing mortgage with the same bank. Use comparison information available and express an interest in finding out more about their mortgage services.
• Make an appointment with a whole market mortgage broker (see the section on brokers) and listen to his or her recommendations – make sure to give all relevant details in order that your entire circumstances can be used to find the best offer
A whole market mortgage broker will search the whole of the market for the best deal for your circumstances. Banks and buildings societies will offer you only their own services and they may have a market-beating offer which they do not make available to mortgage brokers, however, your circumstances may not fit the criteria of the offer. That’s why it’s essential to shop around and compare quotes from other providers as well as with a mortgage broker.
Mortgage Comparison Tables
Be sure to view a few mortgage comparison tables during your search – never focus solely on interest rates. A mortgage includes a variety of other services and costs that are worth due consideration. Below is a selection of considerations beyond interest rates:
• APR (Annual Percentage Rate) – this accounts for the level of fees plus your quoted interest rate. To demonstrate, you may be charged arrangement and booking, plus fees for an evaluation.
In practice, it’s not easy to come up with an entirely accurate measure of APR. Remember that APR does not cover the price of any insurance that you hold separately. APR is still a generally good aid in comparing deals.
• How long is the deal contractual? Bear in mind there will be charges if you leave the contract prior to this date
• Is interest accrued daily, monthly, or yearly?
• What will the rate be when the opening rate stops?
• How flexible is the service when it comes to overpayments, are there fees?
• Is it portable?
What is the highest loan to value (LTV) – this is the top percentage level of the house’s value that the provider will offer. The lower your deposit, the higher a loan you’ll need. For example, if you can offer only 20% as starting equity, you require a mortgage at or above 80%.