Ensuring that you get the best mortgage deal is vital in ascertaining that your finances are in order. After all, mortgage payments are most likely to be the most significant monthly expense.
There are various ways to hunt for the mortgage that is ideal for your needs and financial situation and in this read, we are going to give you a few tips on just that.
Do Your Homework
If you are confident enough to jump into the mortgage domain in your own, there are a lot of resources online to find the current home loan rates in the market and to find out more about the mortgage application process.
Price Comparison Websites
In these sites, you will come across the lowest rates on the kind of home loan you are after- regardless of whether it is a fixed rate, tracker or offset for 3, 5, 10 or 15 years. The good thing is that this information is available for free and you can do it while on the go or at the comfort of your home. These sites, however, just display the current rates on offer and therefore won’t help in finding the most suitable mortgage for your financial situation and requirements.
Tools For Home Loan Eligibility
When it comes to looking into the available mortgage lenders and whether they can offer you the mortgage you are after, then consider using a mortgage eligibility tool.
By keying a few details, you will be able to tell which home loans you are likely to be accepted for and how much you can borrow, based on the lending institution’s requirements.
Using an eligibility tool will allow you to be more informed when it comes to consulting a mortgage broker, which can save a lot of time.
It can ideally reduce the possibility of disappointment down the line. According to the Intermediary Mortgage Lenders Association (IMLA), over 60% of mortgage brokers say that failing to fit a lender’s criteria is a primary source of frustration for numerous consumers.
Seeking Help From an Expert
You will come across a vast array of mortgage deals, each with varying fees, rates, terms & conditions. As such, you might consider seeking the help of a professional, so that they can organise a suitable mortgage on your behalf. They will assess your needs and financial capability and then advise further.
At The Bank
An adviser at the bank should ideally be able to tell you what you can borrow as they have your financial history at their fingertips. Mortgage advisors are regulated by the FCA and are therefore required to ensure that any product they recommend is viable.
However, mortgage advisors at the bank only offer a very narrow array of options as they are only allowed to state the products offered at their institution. Also, there will be some fees to pay, even though they are product-related.
Using a Mortgage Broker
The advantage of using a broker is that they have access to a wide array of products throughout the market as they don’t work for one particular institution. Ideally, they can have access to mortgage deals that aren’t directly available to borrowers.
A mortgage broker will guide you through the loan application process and will know the kind of lenders that will accept you. They ideally know lenders that are willing to work with people with special circumstances, such as those who are self-employed or have a poor credit score.
Mortgage brokers are paid a commission by the lenders, and so, you won’t have to pay them, although some charge a small fee for the products and application process. However, that is not the norm.
Nowadays, you will come across a new kind of mortgage brokers referred to as online brokers. These specialists simply combine product application and giving advice as part of a mortgage application. This route can be especially ideal if you want to handle the application outside your typical working day. That’s because it allows you to fill out all your information and then get a product recommendation.
Keep in mind that online mortgage brokers function a bit differently and so, you may want to look for one that you are most comfortable with. As such, you will want to inquire how they operate, the type of service they offer, and whether or not they cover the entire market.