Buying a house is one of the most expensive purchases that we make in our life time ; so chosing the right mortgage is crucial . with over 10,000 different mortgages out there , it can be quit daunting.
Here is top ten tips when choosing a mortgage
1) shop around
mortgage advisors will be able to help you look at your own financial surcumstances and tailor with you a suitable product . but before you book appointment , search for the mortgage with the help of over mortgage best buys to give you a much better ideal for what sort of rate and mortgage deal you should be aiming it.
2) percentage fees
when choosing a mortgage , you should always look at percentage fees attached to the product . some of the lowest rate s available today will come with percentage fees of up to 2.5% . these means that mortgae of 150,000 frances you could have to pay 3,750 . with such high fee you need to calculate exactly how much you will be paying .
3) how will you pay ?
think about how you paln to pay all of the associated cost with the mortgage . some mrtgage lenders will ask for the set-up fee upfront , whilst others will add intot he cost of your loan . you therefore need to decide what is most suitable for your circumstance.
4) tie-ins
many mortgage deals with tie in for an agreed amount of time which means that if you exits the deal early you will be hit with a redemption penalty . make sure you are aware of how long you are tied in for , and think about how your circumstances may change over the period . early redemption penalties can be very high and you want to incur any more charges that you want to.
5)exits fees
once your mortgage deals end, you need to check to see what fees you would be charged if you want to change to another lender . some lenders will fix the exit fee at the out set , unfortunately most can still charge what they want.
6) flxibility
depending on your circumstance , you may suit a mortgage that allows you to over pay , underpay or take payment holidays . you can then fit you mortgage to suit your needs.
7)higher lending charge
if you want to borrow a higher percentage of the properties value , then you need to be aware of higher lending charges . these are often payable of mortage with over 90% loan to value , and can be has high as 12! as you can see, doing your homework first can literally save your thousands.
8) incentives
some mortgage products will include incentives such as a free valuation , free legal fees , a cash rebate or free insurance for a set time . however its important that these freebies do not fool you , as they are often worked in to the total cost of your deal . calculate how much these incentives will effects the overall costs because what you see is not often what you get .
9) Affordability
it's crucial that you work out how much you want to borrow , and how much you can physically afford . remember you will have to pay council tax , untility bills and insurances , not to mention the TV licence ! under no circumstances should you agree to a loan that you will not be able to or struggle to repay .
our budget planner can help you do this .
10) Ease of Application
Last but not least , when you have found the right mortgage for you , make sure you look at the application form before signing on the dotted line . beware that some applications take a long time to complete , so pick which method you feel most comfortable with - after all , you may be tied to the mortgage for a long time .
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