Important hints to consider when searching for a mortgage.

By: keith lunt

To help when searching for a loans here are some easy tips for you to consider:

Shop around - If you choose to complete the first mortgage that you see then you may be loosing out on a better deal elsewhere. Try to save yourself expense by shopping around and comparing other mortgages to see which have the best mortgage rates for you.

Percentage fees - When choosing a mortgage check the percentage fees that are allotted to it. Some of the lowest percentage fees around at the moment are 2.5%. With this size percentage fee it may mean that on a mortgage of around £100,000 you will have to pay an additional £2500 in percentage fees. Opting for a low percentage can reap thousands.

How will you pay - Before you select your mortgage, work out how you will repay it and the extra costs that are involved. Some banks will charge set up fees upfront, others may include them into the amount of your loan.

Exit fees - when your loan offer has ended you may be charged an exit fee if you want to go to an alternative bank. Check up front and make sure this mortgage is correct for you and the exit fee is not too high if you should wish to change lenders.

Flexible repayments - dependent on your situation you may opt for a loan that allows you to overpay, underpay or take payment holidays. Again, check what your bank will permit you to do and be certain it is the best for you.

Higher lending charge - If you are selecting a loan that is 90% or over the house's cost then you can expect to be charged a higher lending charge. Some mortgage lenders can have very high lending charges so be careful and shop around before you decide which mortgage to apply for.

Incentives - Many building societies will provide for you 'freebies' as an inducement to go with them. However, a lot of the time these incentives aren't actually free, they are just included in the overall cost of your deal. Make sure you do your research on the deal and don't let them fool you.

Read the small print - As with everything, make sure you study the small print. Sometimes there can be negative aspects of the offer that you are unaware of. Be aware and do your research before you agree to a mortgage.

Mortgage broker – these are your support in tracking down a mortgage and can take the unease of trying to compare mortgages for you with their knowledge. Plus, their services are usually free.

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Keith Lunt writes on behalf of, where you can find plenty of useful tools to support you to compare UK mortgages when you are looking for mortgage interest rates.

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