Getting a good mortgage deal can be difficult at the best of times. It is something that is really important tough because it can be one of the most expensive things you will ever get and so you want to make sure that you are not paying over the odds and that you are getting good value for money. Below are some tips on how you can achieve this.
– Finding the right type of mortgage – it is so important that you make sure that you choose the right type of mortgage. This means that you need to understand what the types are and then pick one that suits you. Find out about fixed and variable rates and what the differences are and also about trackers. It is quite simple to understand the differences and how they work and once you have an understanding, you can make a decision as to which would be best for you.
– Have a good deposit or equity – whether you are a first time buyer or remortgaging, the lender will feel more confident if they have to lend less of a percentage of the value of the property. This means that if you have a bigger deposit when buying first time or you have more equity in your house, then you are more likely to get a better deal. If you do not have much equity, then paying off some of the money that you owe on the current mortgage, so you do not need to borrow as much, could be helpful.
– Comparing lenders – it is worth working really hard to find out about all mortgage lenders and what they can offer you. This will take a long time, but if you do the research yourself, you could end up by making a big saving. Many people will use a broker or financial advisor, but they could charge a fee or recommend the company that pays them the most commission rather than the one that is best for you, or both. It is therefore wise to do this yourself if you have the time.
– Check Your Credit Record – it is worth checking your credit record and making sure that it is correct and considering whether you can do anything to improve it. You may find that there are old things on it that should be removed or that you need to make it better so that you get a better mortgage deal. You can improve your credit record by cancelling credit cards that you do not use, paying bills and making repayments on time.
– Negotiating – it is good to talk the mortgage deal over with customer services before signing up. You could see whether they have any better deals, whether there are any ways you can cut costs or rates and just generally try to get yourself the best possible deal from them. It is always worth asking whether there is a way to get things cheaper because they might be and you only risk them saying that there is not.
– Try not to rush – it is important to take the time you need to make sure that you get the best mortgage that you can and the one that suits you the best. It can be easy to rush in to things, accept the first one that is offered and hope that it is the best. Consider your current financial situation and the future, especially with regards to what might happen if the interest rates go up.