Finding the most suitable mortgage for your budget!
Now that you have found a property that you want to call home; finding the most suitable finance with which to purchase it is the next big decision you will have to make.
Choosing the best mortgage for your needs is quite a tricky task. You really need to get to grips with your personal finances and only choose a loan that you believe you can comfortably service over a period of 15-25 years.
It is important to do your research and ensure that you take all the necessary steps and measures to ensure that you get the best deal out of your mortgage before signing up to a loan that could turn out to be toxic further down the road.
Tip 1 – Get quotes From Several Lenders:
The rule to getting the most suitable mortgage is to get information and quotes from different lenders, not just the first lender willing to give you a loan.
Shopping around for a home loan can make all the difference and can save you thousands in the long run.
The only way to get the best finance deal for your home is through comparing the various lenders out there.
Traditionally it is wise to put down a deposit of at least 20% and not borrow more than three times earnings in order to make sure the loan is affordable in the long run. Turns out the FSA is going to make mortgage advice compulsory so you’re going to get a finance lesson whether you like it or not as of 2013.
Repossessions are on the rise so make sure you do your maths before signing up to a mortgage you have no chance of making regular payments on. You will loose your home otherwise.
Tip 2 – Engage The Services Of A Broker:
You can also engage the services of a mortgage broker. Mortgage brokers have access to several lenders and they can contact as many lenders as possible making available to you information about a wider selection of products and loan terms for you to choose from.
You must however be warned that mortgage brokers are not obliged to find you the best deal unless you specifically contract them to do so on your behalf.
Using more than one broker can ensure that you get the best financing deal for your home. Different brokers are available to offer you their services from bank employees to whole of market brokers. The bank employees can tend to be biased towards their institution and may not be the best to consult if you want to choose the best suitable mortgage for your financial situation.
Tip 3 – Use Comparison Websites:
Most companies appreciate that it can be a tiresome and time-consuming task to call different lenders and institutions, asking for quotes, sitting in meetings and gathering all the necessary information on your own. As a result, websites that give you already prepared rates, products, names of lenders and their terms can be accessed for information. These websites will help you compare rates, terms and different mortgage products and will enable you to choose the most suitable option that will suit your financial situation.
Comparison websites are your best option as all the information is readily available at the click of a button, and all you have to do is compare with what your financial situation is and choose the best one for yourself.