Moving home is very time consuming, and most people rate it as being the most stressful experience in their lives. Selling your house is one thing, but then buying the new home and getting a new mortgage offer is another kettle of fish altogether. When it comes to getting your new mortgage or re mortgaging, there are many different methods of doing so, and there are hundreds and thousands of different mortgage lenders to choose from. So how exactly do you pick the best mortgage lender, and which of their packages is best for you and why? Here are the different aspects that you have to consider.
- Many people simply choose to go through a mortgage advisor when choosing a mortgage lender, because they will do most of the paperwork for you, and submit the application for you, as well as contacting the lender beforehand to make sure that you are eligible for a mortgage with them, which can save you time and hassle in the future. They often have access to mortgages that you won’t find on your own, and so they can be cost effective too, but they will charge a small fee for their services. This fee is usually actually covered by the mortgage lender, so you won’t pay anything to the mortgage advisor.
- The other option is to go via a mortgage comparison website, such as compare the market. They will give you the best mortgages available based on what you are looking for, but they won’t show all available mortgages, and won’t give you the terms and conditions either. This is a more difficult method, and isn’t recommended. You can also buy house removal packing boxes online too.
- You will need to give the mortgage advisor or comparison website the amount you wish to borrow, the amount of deposit you have available, and the number of years that you wish to borrow the money for. They will give you the monthly repayment sum, and from this you can calculate what you want to do.
- Different mortgage lenders will have different mortgage rates, which is the percentage charge that the lender will give you for borrowing. It is usually based on the interest rate in the UK. The mortgage rates get worse when you go on longer term mortgages, and they get worse if you put smaller deposits down. In an ideal world, you therefore want to put down a large mortgage deposit, and pay it off very quickly, but this isn’t always financially possible.
- You can choose to have a fixed rate mortgage or a variable mortgage too, and you can be fixed for two, five, ten or many more years. Once the fixed rate ends, you automatically enrol on the variable rate, which is more expensive. Fixed rate mortgages are safer, but can be more expensive the longer you fix in for. Ideally you would want a five year fixed, depending on the monthly repayments.
- So when you are picking the best mortgage for you, you will need to take into consideration all of these different factors, and ultimately it comes down to your ability to repay the mortgage and how much you are willing to pay per month.
- he amount you spend on a house will depend on what you are willing to live in, and a more expensive house is going to be less favourable in terms of mortgage rate and charges, but the house is likely to be nicer to live in. So it is a case of weighing up the pros and cons of the house and mortgage and making an informed decision.