If using a contractor mortgage broker, you are likely going to be accompanied with some professional advice as part of their service. But if you are attempting to secure a mortgage off your own back, you may have a harder time coming to a decision of which lender is most suitable for you.
- The Offer
Of course you are going to want a decent offer for you to buy the property you want, so this is likely going to affect your decision quite a bit. Consider the type of repayments and length of mortgage before concluding that it is a good deal.
- The Rates
Interest rates on mortgages can have a huge impact on the monthly bills, so the lowest possible interest is going to help you in the long run. You will also need to take into consideration fixed term or variable mortgages, the latter can incur increases in interest from the lender regardless of any such movements to the Bank of England’s base rate. The regularity that recalculations are made on the outstanding mortgage on which interest needs to be paid should be at least monthly.
- The Small Print
As with any contract, you should always check the small print for any caveats that might come back to bite you later. Ensure you are fully aware of any terms involved for you leaving the lender to avoid astronomical charges for doing a runner when their rates go up. Also beware of insurance products which are compulsory in order for you to take out the mortgage, as these are often poor value.
- The Service
Arguably just as important as all of the above, you want to get good service. A lender who will take a long time to process your application may cost you money or even the property you want (the same goes for brokers). Purchasing a property can be exciting for also quite a stressful time so using a lender who makes it easier on you with good service is worthwhile.
Everybody is different so a good deal for you may not be a good deal for the next contractor. If unsure, speak with a financial advisor or consider using a contractor mortgage broker.
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