A guide to choosing the best mortgage

A guide to choosing the best mortgage

2nd Nov, 2015

Buying a house, whether it be as a first time or fifth time buyer, is an expensive purchase. With so many mortgages available, it can be difficult to know which one is best for you. We have provided some tips in order to help you get the best deal possible.

Credit Rating:

To get the best deal you should make sure you have control over your money. This means building up a credit rating. The better credit rating and bigger deposit, the more options you will have when finding the most suitable mortgage deal.

Flexibility:

Many people prefer a mortgage with flexibility. This may mean paying more for a few months or cutting down the monthly payment. Some even offer payment holidays. This means your mortgage can be personalised to suit your requirements.

Incentives:

Many mortgages, especially for first time buyers will offer incentives such as free legal fees, cash incentives or even low deposit mortgages. Find out if your mortgage offers anything that suits your needs.

Affordability:

Before searching for a mortgage, calculate how much you can comfortably afford. When you own a house, you need to consider other fees such as council tax, television licenses and utility bills. Make sure that you will not be struggling to repay your mortgage once you have bought your house.

Type of mortgage:

When choosing a mortgage, most people choose between a fixed rate, that will have set payments for a period of time and a variable rate that are set by lenders and can change. A variable rate may be the cheaper option but can also change due to interest rates. Most first time buyers will choose the safety of a fixed rate.  

 

Source: Pixabay

View all posts by Amy Wray


Share this