• Mortgages

    Top Tips for Picking the Best Mortgage Deal

    If you are looking for a mortgage then it will not be surprising if you find things rather confusing. There are so many different lenders to choose from who offer all sorts of different products and this can make things extremely confusing. It used to worth contacting a financial advisor who would explain to you about all of the different options so that you could get a better understanding of it. Now that they charge an hourly rate rather than getting omission on leads it can mean that they are too expensive for many people to use. Therefore, most people may decide to do the research themselves.

    Understand mortgage types

    To start with you will need to understand about the different types of mortgages, such as repayments versus interest only, fixed rate versus variable rate or tracker rate and you might be able to get this information from your bank. Banks will provide free financial advice but they will only discuss the products that they have available so they will be biased. However, it can be a good way to learn about types of mortgages and ask any questions that you have without being charged.

    Consider what you want from a lender

    It is worth thinking about what you want from a mortgage lender so that you can pick one that fits your needs. There are lots of possible features that you might be looking for. Perhaps you want a well-known name, one with a high street branch nearby, one with a good reputation or with good customer services. There are lots of things that might be important to you and these are just a few. Write your own list and this will help you to eliminate some lenders such as Omacl.co.uk. You may need to ask people what they think of certain lenders so that you can find out what their reputation is like or perhaps you might prefer to read online reviews or to do both. You might want to contact them and find out how good they are at responding, perhaps how quick they are and how useful and polite they are. These things can take a while but as a mortgage is a long-term commitment, if they are important to you then they are worth doing.

    Compare rates and costs

    Obviously the cost of a mortgage is really important. You really do not want to be paying out more than necessary for it and so you want to look at how much they will charge. There are several ways though that mortgage lenders charge and it is therefore important to be aware of them all. The interest rate is the rate that we all tend to compare. They may charge a fixed rate on some mortgages for a certain time period and then move onto the variable rate. Some may always have a variable rate and some may track the base rate. It is good to look at these rates and see how different lenders compare. However, it is important to make sure that you are aware that this is not the only charges that you will face. You will also have to pay some charges. There can often be an administration fee when you first take out a mortgage and this can vary a lot. Therefore, it is good to be aware of how much this is. Then if you are interested in making overpayments on the mortgage then there could be an early redemption charge which again can vary a lot. If you think that you might want to change lenders before the mortgage term has finished then there could be a charge for that as well. There will also be a charge if you miss a repayment or make one late. These charges can be pretty significant and are worth being aware of even if you think that you will not make a late repayment.

    Compare term and repayment amounts

    It is also worth looking at how long you will be paying back over and how much those repayments will be. You want to be sure that you will be able to afford the repayments and that you will be able to continue to afford them for the full term of the loan. It is likely that you will be repaying for between twenty and thirty years so it can be hard to predict how easy it will be. However, it is wise to be aware and make sure that you will at least be able to afford things in the short-term.

    Compare features

    There are other features that you might be interested in as well with regards to the different types of mortgages. Make sure that you are at least aware of the key features so that you know what you are getting into and what to expect and then you should have enough information to make an informed decision.