10 Things To Know About Choosing Your Mortgage
1. Shop around
There are thousands of mortgage deals on offer in the UK, so
it is vital that you research the market thoroughly and do
not simply go for the first mortgage you are offered.
2. Seek advice
If you feel lost or confused, then it could make sense to
consult a mortgage adviser. They are fully qualified
professionals who have access to a wide range of mortgage
deals and can find you the best first-time buyer mortgage to
suit your needs.
3. Make up your mind
There is no one ideal mortgage product for everyone. Only
you can decide whether you would be best suited to a fixed
rate or a variable deal - it is often a question of your
attitude to risk.
4. Don't be afraid to ask
Whether you are talking to a mortgage lender or an
independent broker, make sure you understand everything that
they are telling you. If there is something you don't
understand, don't be afraid to ask. You are a first-time
buyer so you aren't expected to know it all. Taking out your
first mortgage a huge financial commitment, so make sure you
know exactly what you are getting into.
5. Read the small print
None of us like doing it, but it is vital that you look at
the detail of your mortgage offer, and the lender's terms
and conditions.
6. Be realistic
Don't try to borrow more than you can afford to pay back.
When you buy your first home it is vital that you are able
to comfortably meet your monthly repayments and that you
could continue to make them should interest rates rise. The
lender will run checks to make sure you are not biting off
more than you can chew, but you should also discipline
yourself in this regard.
7. Be honest
Many lenders these days will base how much they will lend
you on your income and your outgoings. Do not be tempted to
overstate your income or to play down your expenditure or
other debt commitments. Note that it is illegal to lie about
your income on a mortgage application form.
8. Think ahead
When selecting your mortgage, think about your next likely
home move or next mortgage. As a first-time buyer, this may
be the last thing on your mind. But it is important. Find
out, for example, whether the lender you have chosen will
offer you a full range of deals when you get to the end of
your current arrangement. Many only offer their best deals
to new customers, so next time round you could be forced to
move lender for the best rate, which can take time and cost
money.
9. Shop around - again
Once you have found the mortgage deal you're happy with,
shop around again for your insurance. You will need
buildings insurance and are strongly advised to take out
contents cover and life insurance. And possibly mortgage
payment protection insurance. Your mortgage lender may offer
to sort this out for you, but remember that they are not
insurance specialists and may not offer the best cover or
the cheapest rates.
10. Be happy
First-time buyers face a huge challenge just getting on the
property ladder these days. Congratulate yourself for
achieving this feat
For further information view
KMS Mortgage Solutions