"The Easy Way to Get Your Best UK Mortgage" |
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Mortgage Guide
Click for Full Contents
Mortgage Buying Tips
Contents
***
Don't
take the first mortgage going
Shop around
Look
for a "loss leader"
Don't
be taken in by a low sounding initial interest rate
***
Make three comparisons
Small is beautiful
Don't tell any
porkies
Save thousands
by getting a shorter mortgage term
Consider
using a Mortgage Broker
See contents of Full Mortgages Guide
See contents of Home Buyers Guide
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Compare Three Mortgages
Use the following yardsticks
Compare all the fees charged.
Is there an application fee?
Will the mortgage lender pay for the Valuation?
Is Mortgage Indemnity Insurance compulsory? (This type of insurance only insures the mortgage lender and not you). If so, how much is it costing you?
Is the interest on your mortgage calculated at a daily rate? (This is much better for you than if calculated annually - See our Mortgage calculator - Difference Between Paying Interest Daily versus Paying It Yearly).
What is the redemption penalty ie what will you have to pay as a penalty for leaving during the agreed timescale of the deal.
If you secure a special deal is there any further penalty for leaving after it's come to an end - ie an " overhanging lock in".
Check the mortgage lender's usual variable rate. How does it compare to the market? If it's higher avoid them because this is what you'll probably end up paying after the special deal is over (if, like most people, you forget to move mortgage lenders).
Consider carefully how competitive is the total cost and terms of the mortgage.
See
today's Best Buy tables
Mortgage
Tips List
General UK Mortgages Guide Contents
Small is beautiful
Building societies often give a better deal than the banks. The smallest building societies you may never have heard of can offer the very best rates.
In addition there's something more personal about them that you may find more attractive than the bigger operations.
See today's Best Buy tablesMortgage Tips List
General UK Mortgages Guide Contents
Don't tell any porkies
If you lie - eg about a bad credit history - it will very probably be spotted by the mortgage lender and screw up your chances of a mortgage.
Honesty is the least complicated and best policy. There are
ways you can successfully get a mortgage if you've got a Bad
credit history click
here to see how
See
today's Best Buy tables
Mortgage
Tips List
General UK Mortgages Guide Contents
How to save thousands by getting a shorter mortgage term
Normally
buying a home will cost you two or three times the price you
paid.
For
example, if you borrowed £100,000 to buy your house you could easily end
up paying back up to £250,000 over the 25 mortgage period.
This is because of the effect paying interest has on your mortgage repayments.
If you pay more every month you'll end up paying much less in interest.
Sure, your monthly repayments will be higher, but the overall cost will be hugely lowered.
For example:
Say you've borrowed £120,000 over 25 years at an interest rate of 10% on a normal repayment mortgage.
Your repayments would be £500 a month.
However, if you increase your repayments to £600 a month your mortgage would be paid off after 15 years
You would have saved about £40,000
Pay even more and you would be looking at even greater eventual savings.
How
to work it out?
Simple.
Just get the mortgage lender to work it out for you.
They should be able to give you a breakdown of
(1) Different mortgage periods, eg repaying the loan over 25 years, 20 years, 15 years and so on.
(2) Different monthly repayments amounts - which you think you can afford.
(3)
The total you will have repaid by the end of the mortgage
period.
If the mortgage lender's employee won't work it out for you
(which they can, very easily), speak to a manager
and ask if they really do want you to have to go elsewhere.
Despite the impression they may want to give you, all
mortgage companies are interested in your business.
So they should be quite willing to do this.
But be careful how they handle your overpayments
A secret trick used by the mortgage lenders is to keep overpayments (which is what you're doing here) suspended in their own account until the end of the year. Then they credit it to you.So they've earned interest on your money.
Check what their policy is. If that's how they play it then open your own high interest savings account. Then pay it all over at the end of the year. That way you gain from the interest your money earned.
See
today's Best Buy tables
Mortgage
Tips List
General UK Mortgages Guide Contents
Consider using a Mortgage Broker
Many people use brokers for convenience. They'll do the legwork for you and often it costs you nothing extra because they're happy to do it for the fee they'll get from the mortgage lender.
However do note that some lenders try to save money on paying fees to brokers by giving you a better deal if you go direct.
However, all you have to do here is take the best quote from a broker and use it for comparison with mortgages you can buy direct.
To read more on this subject please see the list below or your mortgage guide or your home buying guide
Read enough? Just want a quote? To get your best mortgage quote quickly and easily we can put you in contact with a recommended mortgage adviser. It's free, completely confidential and there's no obligation at all. Simply fill out the form below
See
today's Best Buy tables
Mortgage
Tips List
General UK Mortgages Guide Contents
See contents of Full Mortgages Guide
See contents of Home Buyers Guide
I've read enough for now and want to get a free Quick Mortgage Quote
mortgage tips
