To help when looking for a mortgages here are some easy notes for you to look at:
Shop around - If you choose to go with the first loan that you see then you might be missing out on a better deal elsewhere. Try to save yourself money by shopping around and comparing other mortgages to see which have the best mortgage rates for you.
Percentage fees - When finding a mortgage check the percentage fees that are attached to it. Some of the most favourable percentage fees about at the moment are 2.5%. With this size percentage fee it may mean that on a mortgage of in the order of £100,000 you will have to pay an extra £2500 in percentage fees. Seeking a low percentage can save you thousands.
How will you pay - Before you choose your loan, work out how you will repay it and the additional costs that are involved. Some mortgage lenders will charge set up fees upfront, others may add them onto the amount of your loan.
Exit fees - when your loan offer has ended you may incur an exit fee if you want to go to another bank. Check up front and make sure this loan is appropriate for you and the exit fee is not too high if you should wish to change lenders.
Flexible repayments - dependent on your employment you may like a mortgage that allows you to overpay, underpay or take payment holidays. Again, check what your building society will permit you to do and make sure it is the best for you.
Higher lending charge - If you are arranging a loan that is 90% or over the house's value then you can expect to be charged a higher lending charge. Some banks can have very high lending charges so be aware and shop around before you decide which mortgage to apply for.
Incentives - Many building societies will give you 'freebies' as an incentive to go with them. However, a lot of the time these incentives aren't actually free, they are just added into the overall cost of your deal. Make sure you do your research on the deal and don't let them trick 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. Take care and do your research before you agree to a mortgage.
Mortgage broker – these are your support in tracking down a loan and can take the doubt out of trying to compare mortgages for you with their knowledge. Also, their services are usually free.
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Keith Lunt writes for CompareMortgageRates.co.uk, where you can find loads of useful tools to support you to compare best mortgages when you are looking for mortgage rates.
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