Choosing the right mortgage is an important decision, one which requires a good deal of thought and research. Knowledge is the key, as with any major decision making process, so here is a list of questions that you should have clearly answered before committing yourself to a mortgage.
The first stage is to determine for yourself, or with your spouse, exactly what you are looking for in a mortgage, including the amount you want to spend on a home, the desired interest rates, and other variable aspects of getting a mortgage.
- How much am I eligible for?
Be sure to have all your financial documentation together before meeting with a lender. It is a good idea to have a budget worked out, to identify how much you are comfortable spending. The lending institution will review your information with you and determine exactly how much funding you qualify for.
- What type of mortgage is best for me?
There are many different varieties of mortgages available, including those with fixed and variable interest rates, and repayment or interest only mortgages. Familiarise yourself with the options before committing to a mortgage.
- How much of a deposit can you afford?
Even when going for a mortgage that features a small deposit, it is important to have some funds saved up to more than cover it. Remember, a portion of your savings will need to be used towards legal fees and other costs, and that should be considered when deciding how much you can afford to put down.
- Should I use a bank or a broker?
There is a big difference between mortgage brokers and banks. Before starting the mortgage process, decide what type of lender is best for you. A broker acts as the go-between between the client (you) and the bank. Using a broker can be very beneficial, especially for first time buyers as they assist every step of the way. They’ll help with filling in paperwork, explaining the process, and negotiating the best deals and rates on the market. A bank is only able to provide you their rates, which may only be the best if you are an established client.
If you have come in to difficulty with mortgage payments and feel you are eligible for a mortgage arrears charge claim then please contact our team today on 0800 690 6548.