When it comes to buying a home, whether it’s your first or the next in a line of a number of previous purchases, very few of us are lucky enough to be able to do so without a mortgage. Whilst a mortgage certainly isn’t considered a bad debt and there’s absolutely no shame in taking out a mortgage, what you need to understand is that there isn’t just one type of mortgage and there certainly isn’t a ‘one size fits all.’ As such, we wanted to bring you our three top tips for finding the most suitable mortgage:
- Shop Around
Whilst it may seem like the obvious decision to approach your bank and take out a mortgage with them, hold fire before signing up with them straight off. It’s absolutely essential, when shopping for a mortgage, that you take time to shop around and take a look at the offerings from a whole host of different lenders. As such, you’ll be sure to get the very best interest rate and when we’re talking about borrowing often hundreds of thousands of pounds, even a slightly lower interest rate can make all the difference to your monthly repayments. It really does pay to shop around and when it comes to mortgages, you could see yourselves saving thousands of pounds over the term.
- Look At The Different Products
For some people, a tracker mortgage may be the most appropriate type, however for others, getting a fixed rate mortgage may be the most suitable. Everyone has different needs and requirements and, as such, it’s important that you compare the different mortgage products available and understand which is the most suited to your needs and requirements. If you’re wanting to know exactly how much you’re paying each month, but take the risk of paying the same level if interest rates decrease, it’s likely that a fixed rate mortgage is best for you, however if you’re happy to take a little bit of risk of fluctuating payment amounts with the potential of an often lower rate, by all means take a look at tracker mortgages. Do your research and you’ll be ready to make the decision!
- Consider Using A Mortgage Broker
If all of the above sounds confusion and sounds like hassle, why not consider using a mortgage broker to find the very best deal and the most suitable mortgage for you? We caught up with Andy from Mortgageforce Worcester who outlined to us, ‘it’s usually the case that the services of mortgage brokers are completely free of charge due to the broker receiving a commission or referral fee from the lender. As such, it makes absolutely no sense to stress yourself out over finding the best mortgage when you can leave it to a professional without it costing you a penny!’
All in all, take your time, do your research and maintain your focus on finding your dream home!