Sunday 12 June 2011

Compare The Market for Mortgages - Why should I do it?


It has become extremely hard to find the right mortgage for your situation. Since the start of the recession, 100% mortgage deals are not offered by lenders anymore, and mortgage lenders have become a lot more cautious. Many mortgage brokers will now typically require a 15% deposit upfront as a minimum, and 20% and over for buy-to-let mortgages.  get the best mortgage rates, you should be ready for upfront deposits of 25% and sometimes even more.

So more than ever it is vital to compare mortgages as deals are available from hundreds of lenders. We have compiled a couple of tips get you started:

1) Research: when it comes to mortgages, the more you know about them the better! There are so many types of mortgages these days that finding the ideal mortgage can be a scary task. The internet is a good source of information – just enter “mortgage advice” in google.

2) Compare the market: mortgage deals vary a lot between mortgage lenders, so it is necessary to compare all the options available. Many comparison sites can be found on the web, and can be a good place to give you an idea of the current mortgage rates.

3) Be aware of all the fees involved: don’t be attracted by a ultra low rate. Often the mortage deals with the lowest rates have got high arrangementfees and may not be the best choice. You must consider the total cost of the mortgage over the entire term rather than a short-lived low mortgage rate.

4) Understand early repayment charges: a lot of mortgage deals have got high early repayment charges that make it very costly to change lender if you decide to switch to a better deal.

5) Seek the advice of an  mortgage advisors: a mortgage is probably the biggest investment choice you will ever make, so it is essential that you talk to a  financial advisors. Only a  mortgage adviser can give you impartial advice to let you choose the best mortgage deal for you situation.

6) Do some planning: where do you see yourself in 5 years time? Will you be able to afford the mortgage  payments? Bear in mind that a mortgage is repayed over a long period of time, you should therefore plan ahead, and ensure that the type of mortgage you select for will be in line with your potentialfuture situation.

If you want to know some more, the original article can be found at this page: Compare The Market Mortgages.