Now more than ever in the current economic climate it is important that you find the right deal that
is affordable and that matches your needs.
We know that whether you’re a first time buyer or remortgaging your current property that
choosing the right deal is one of the most important financial decisions you will have to make and
that is why we are here to help you find the right deal.
If you need help working out how much you can borrow please use our mortgage calculator or
simply pop your details into the form above and we will do all the hard work for you.
Things to consider when searching for a mortgage:
- Credit Score – all banks and building societies will review you credit file to ascertain if you
are an adequate risk. Most Credit applications such as Equifax and Experian will score you depending
on how well your financial accounts are managed. Contrary to what you might think, having no credit
on your file is not normally a good thing because the lender doesn’t know what kind of risk you are,
that’s not to say you should rush out and take out as much credit as possible, its more than likely
that lenders will just ask for different information is find out what kind of risk you are.
- Affordability – historically, lenders use to base their mortgage lending on income multiples and
some still do but now they are more likely, in the name of responsible lending, assess an applicant
affordability by looking at a applicants incomings and outgoings. From there they will assess how
much of a loan is affordable based on your disposable income.
- Charges – there are a variety of charges connected with a mortgage including; Higher Lending Charge,
application fees, Product/arrangement fee and maintenance fees to name a few. Most of these can be
added to the loan amount without affecting your loan to value but bear in mind that interest will be
charged on the total loan amount including the fees.
- Valuation reports – cost of a valuation report is dependent on what type of valuation report you
request and the market value of your property i.e. a basic valuation report would cost in a region
of £240+ while a full valuation report with a building inspection would be in the region of
£455 +. If this is carried out by the lender then they will often charge this fee up front
because a mortgage application can be declined on the strength of a valuation report so lenders
will want to make sure they are not out of pocket.
When searching for a mortgage:
- Always seek independent financial advice from a CMAP qualified
mortgage intermediary – a mortgage is a big commitment and there are many different types
of mortgage product out there on the market so always get advice from an expert. An additional
benefit is that some mortgage brokers can obtain exclusive deals from some lenders which are not
available to the wider market. However bear in mind that mortgage brokers are paid commission on
the sale and a procuration fee from the lender if your mortgage goes through.
- Compare Mortgages Online – it’s a simple and easy thing to
do. The internet holds a wealth of information and most comparison websites will show a wide range
of mortgage products varying from fixed mortgages, buy to let, self build, and offset mortgages.
- Make sure when you submit your information that it is spelt
correctly and there are no mistakes – after any spelling mistakes or changes the lender
will automatically search your credit file again and each time will leave a footprint and if you
have a lot of footprints on your file it can make your application fail even if you are a good risk.
- Make sure you read all paperwork and that you understand everything
you are agreeing to – you mortgage is the largest financial obligation you will ever take
on so make sure your happy with it because once it exchanges you are legally obligated to the vendor.
- Make use of online mortgage calculators - these will give
you an accurate idea of what you can afford and will also give you an insight as to what your
monthly payment could be allowing you to budget adequately. Making sure you can afford the monthly
commitment is important because, as it is reiterated on every mortgage document you will receive,
your home is at risk if you do not keep up with repayments on your mortgage or any other debt
secured on it.
If you want more information, see Moneyextra.com’s Guide to Mortgages.