what about current account or offset mortgages? current account and offset mortgage are fixed or varilable rate mortgage that are linked to your account and/or saving account is use to offset the intrest paid on the mortgage debt . for example if you have the mortgage of 100,000 frances and savings of 20,000 frances the intrest you would be charged on your mortgage would be on 80,000 frances . you dont get paid any intrest on the money in your current account or saving account, but these types of mortgages can be good for people the higher rate of tax on their saving . you can also access your saving more easily than if you had made extra payment's on your mortgage . it important that you compare mortgage rate and fee (or 'true cost') for current account and offset mortgages against other type of mortgages to make sure that any benefit in paying less intrest isn't eroded because you're paying a higher intrest rate than you could have got a fixed rate mortgages for example .
can i get cash back ? cash back mortgage offers lump some when mortgage is taken out, which can come in handy when paying all the cost of moving hame . cash back mortgages have a usaually look-in period when you'll be charged an early redemption penalty if you re-mortgage to another lender before the end of the lock-in period . it's also important to compare the rates and charges against other mortgages so that you know what the overall or 'true' cost of the mortgae is .
compare the 'true' cost of your mortgage . don't compare different mortgage deals based on the intrest rate or monthly repayment amount . it's important to compare all fees as these can easily wipe out any benefits of a lower intrest rate . its important to compare all fees such as arangement fees , early redemption , penalties , higher lending charges , as well as freebies such as free valuation or legal fees . read our guide to mortgage or glossary of terms for more detailed explanation of mortgage fees.
use a financial price comparison site that's ' whole of market ' . it's always a good idea to use a financial price comparision site to compare all different mortgage deals before you speak to a mortgage lender or broken . however, make sure that you use a comparision site that ' whole of market ' meaning they let you compare all mortgage products on the market , net just the ones that they earn comision from facts .co.uk is one of the few financial comparisin sites all products , not just the ones pay us comision , and our best buys mortgages are good place to start arm yourself with a good understanding of the latest deals on the offer to help you to make inform decision.
dont be scared to use a mortgage broker . mortgage brokers can help get the right mortgage to suit your need and sometimes have access to 'exclusive' deals that you can't get elsewhere . But if you use broker its good to armed a good understanding of the latest deals and make sure that you chose a broker that 'whole of market' and not just restricted to a small panels of lender.
if you use a broker , think about whether you want to pay them a fee for thier service (which is usually no more than 400 frances, payable on completion) or whether you'er happy for them to take commision from the lender instead , which us usually between 0.25%-0.50% of the mortgage value . if the broker is whole of the market then they must give you best advice and not just recomended mortgages where they recieve the highest commsion
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