How to shop around for the best mortgage

How to shop around for the best mortgage

It is vitally important that you are certain that the mortgage you choose suit your needs. With a range of clauses, initial terms, penalty fees, deposits and interest rates to consider, choosing the wrong mortgage can cost you dearly in the long run, or even in the short term. Here is a look at some key ways in which you can be sure that you have made the right choice.

Despite the fact that your financial situation may be similar to that of your friend or colleague, it will very rarely be identical. The advice that they may give you about the best mortgage may not necessarily fit with your needs. They may have more dependent children, be further away from retirement age or have a different size of deposit than the one that you can afford to put down. It is vital that you cast the net wide when looking for a mortgage to ensure that you secure the best deal.

Make the Comparison

Visiting banks and talking to their representatives can be a very time-consuming task and even trawling through the individual websites of each bank can take an afternoon. The best way to get an idea of what each bank can offer someone in your circumstances is to visit a comparison website and find out exactly what is available. That way, you could narrow down the thousands of mortgage products out there to a fairly short list of deals that are both feasible and available to you.

Take Professional Advice

Once you have made your short list, it is best to take some independent financial advice. Representatives of a bank are only at liberty to talk about their own products, but IFAs can give you honest and impartial mortgage advice. They will also be able to explain the various penalties, clauses and minimum terms that come with mortgages, so you know exactly what you are letting yourself in for.

Wisdom of the Crowds

After taking professional mortgage advice, it is a good idea to take a look at forums or message boards on financial or advice sites to see what the general public thinks of the mortgage products. It may well be that some mortgage products come with attractive rates but the provider becomes utterly unhelpful when problems occur.

A word of caution, however, about viewing online forums. It is best to look for the middle ground, as many products will attract comments that can be overly effusive in praise or highly damning. Look for what the majority of people are saying rather than one person with a bad experience.

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