Key hints to look at when hunting for a mortgage.
Purchasing your home is one of the most expensive financial transactions we will experience in our lives. Many of us will have to use a mortgage in order to purchase the house and so finding the right mortgage for you is important.
To help when hunting for a mortgages here are some easy notes for you to look at:
Shop around – If you decide to accept the first loan that you find then you might be loosing out on a better offer elsewhere. Try to save yourself money by looking around and comparing other mortgages to see which have the best compare mortgage rates for you.
Percentage fees – When choosing a loan check the percentage fees that are included in it. Some of the lowest percentage fees about at the moment are 2.5%. With this size percentage fee it may mean that on a loan of about £100,000 you will have to pay an additional £2500 in percentage fees. Choosing a low percentage can reap thousands.
How will you pay – Before you find your mortgage, work out how you will repay it and the extra costs that are involved. Some banks will charge set up fees upfront, others may add them onto the cost of your mortgage.
Exit fees – when your mortgage deal has ended you may be charged an exit fee if you want to swap to a different mortgage lender. Check up front and make sure this loan is appropriate for you and the exit fee is not too high if you should wish to change lenders.
Flexible repayments – dependent on your circumstances you may prefer a loan that allows you to overpay, underpay or take payment holidays. Again, check what your bank will allow you to do and be certain it is the best for you.
Higher lending charge – If you are choosing a mortgage that is 90% or over the home’s value then you can expect to pay a higher lending charge. Some building societies can have very expensive lending charges so be careful and shop around before you decide which mortgage to apply for.
Incentives – Many banks will include for you ‘freebies’ as an inducement to go with them. However, a lot of the time these incentives aren’t actually free, they are just included in the overall cost of your deal. Make sure you do your research on the deal and don’t let them trick you.
Read the small print – As with all contracts, make sure you study the small print. Sometimes there can be negative aspects of the offer that you are unaware of. Be aware and do your research before you settle on anything.
Mortgage broker – these are your support in searching for a loan and can take the doubt out of trying to compare mortgage loan rates for you with their expertise. Plus, their services are usually free.
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