Buying a house is one of the most expensive purchases we will ever make in our lifetime and for the majority of us, we will be paying for the privilege until we are close to retirement – so selecting the right mortgage is crucial!
With more deals available than ever before, it can be a daunting task trying to decide which one is best for you. Therefore, we have compiled a list of factors to consider to help you source the perfect one.
The rate
This is one of the most important things when choosing a mortgage, because it will determine how much it is going to cost you to borrow the money. Lenders will usually offer a wide range of packages for a customer, and some of these are:
Fixed: as the name suggests, the repayments are set at a certain level for a given time – this is usually two, three or five years. During this period your rate is guaranteed not to change.
Tracker: what you pay is attached to another rate – usually the Bank of England’s – so it will fluctuate depending on the market.
Fees
You should always look at the fees attached to the product you are interested in. Some of the lowest rates available can come with hefty additional charges, so ensure that you carefully calculate how much you’ll be paying.
Tie-ins
Many lender deals will have a fixed amount of time attached to them, meaning that you can’t leave before it ends – and if you do, you will be hit with a redemption penalty. To make sure that this doesn’t happen, think about how your circumstances may change over the given period and whether you will still be able to afford to make the repayments.
Incentives
Some products will offer you additional extras, such as a free valuation, free legal fees or a cash rebate on completion. But it is important that you don’t let these freebies fool you, as they can often be worked into the total cost of your deal – so what you see, may not always be what you get!
We hope that these tips will help you to make the right decision when it comes to selecting the perfect mortgage for you. It is a huge financial choice – and not one that should be taken lightly or made in a rush – so shop around until you find the deal right for you.
If you require further advice, please feel free to get in touch with one of our reliable sales team!
