Buying a property is in no way a trivial decision. When you’re looking to take out a mortgage, you might feel a lot of pressure to find one which is ideal for you. So how do you go about that? This is a pretty complicated question to answer. However, once you understand certain principles, finding the perfect mortgage is easier than you may think.
Going to your high-street bank for a mortgage may seem like the easiest option. Don’t be too hasty though! There are many pros and cons to getting your mortgage through your bank. Generally speaking, there isn’t much of a financial benefit in this option. However, it can be much easier to manage, as all your finances will be in one place. If you have a good history with your bank, then your rates will be much more desirable than otherwise. If you’re looking for a mortgage that’s good for the money, then shopping around is almost definitely the way to go. There’s a pretty good rule of thumb here. Look at the amount you require, your work situation and the deposit, then compare these factors to national averages. The closer you are to the average, the better a bank mortgage will be for you.
If your personal circumstances are a little more unusual, then you may need to look elsewhere. There are comparison websites for everything these days, and mortgages are no exception! Using a site such as Rate City is an easy way you can study the benefits and drawbacks of all your different options. Depending on the site you go to, there can be small inaccuracies. Generally though, they’re an incredibly helpful step towards the mortgage that’s right for you. Every mortgage has several varied attributes. It’s important that you understand how every one of these will affect you before going further. Take a booking fee mortgage with a high interest rate as an example. With this, you’ll be paying less up front, but may end up owing more in the long run.
The last thing to do is liaise with a mortgage broker. Companies such as SMBIA advise people on mortgages professionally. They’ll be able to do all the work you haven’t in pinning down the right one for you. Their inside knowledge is extremely valuable in the long run, so don’t skip this step! Don’t just go hiring anyone though. There are two types of brokers or advisors; in-house and independent. In-house brokers are attached to a lender, and although slightly cheaper, will limit your search. The more expensive, independent option will give you a wider selection, but their fees can stack up very quickly! Both kinds are regulated, so don’t worry about getting conned.
There’s no way to totally simplify mortgages, but I hope this information helped. There might be a long and complex road ahead of you, but don’t lose heart! Work your way through the process, and soon you’ll be settling down into your very own house. Doesn’t that sound worth it?