CHOOSING THE RIGHT MORTGAGE
With so many lenders competing in the mortgage market, finding the right mortgage is not gett ing any easier. The amount of information available can be overwhelming as you struggle to find the mortgage that best suits your needs.
So why spend so much time and effort searching for the best mortgage? The answer is simple: because a mortgage will probably be your largest financial commitment you need to make sure you get value for money over the whole mortgage period.
There are many things to keep in mind when choosing a mortgage. Most people will think about value for money, convenience and flexibili ty. Whatever the combination, you need to consider your situation both now and in the future to make sure your mortgage will continue to satisfy your needs. With so many lenders competing for your business it is worth shopping around with an 010 I.F.A to make sure you find the mortgage you are looking for.
You will obviously want a low interest rate, but there are many other points you need to consider. It is important to think about the long term as much as the short term. It can be tempting to focus too much on the present and take offers that provide short-term gain but become less competitive over the life of your mortgage. For example, attractive short-term discounts and cashbacks can tie you into a deal that could cost you more in the long term.
While you may benefit from a lower rate or cash lump sum initially, you could face high penalty charges if you want to change lender once your loan is switched onto a higher standard variable rate if you try to sort out your mortgage yourself. These penalties may not seem too bad at the time you take out your mortgage but a few years later you may find that you are tied into paying a higher rate than you want to be!
You should also consider the type of service your lender will provide. Buying a house, or simply changing lender, can be time-consuming and complicated. If you choose 010 we will put you in touch with a I.F.A who will see you at a time convienient to you who will "hunt out" the best deals for you for free..
Finally, you need to think about flexibility. Your personal circumstances may change during the life of your mortgage. Will your mortgage lender be able to accommodate change? At different times you may want to make overpayments, underpay, take a repaymen t break, or borrow more money. You should check what flexibility your lender can provide. For example. by overpaying your mortgage by £50 each month on a £60,000 repayment mortgage taken over 25 years you could save over£22,500 in interest payments and reduce the length of your mortgage by over 6 yrs
Lenders providing this flexibility operate their mortgages on a daily interest basis. This means you get the benefits of any overpayments immediately.
So remember to consider your future circumstances as much as your current ones to make sure you choose a lender which will provide good long-term value backed up with excellent service and the flexibility to change with your own circumstances.
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