There are lots of mortgages available for us to take out and it can be difficult to know where to find the very best one. It is made even harder by the fact hat there is not just one simple answer for this. This is because we all have different requirements when we are looking for a mortgage and this means that there is not just one specific mortgage that will work for all of us. Therefore, we should think about what we are looking for in a mortgage to start with. The following things might be a good starting point –
- Cost – most of us will be concerned about the cost of a mortgage. We will not want to pay more than necessary, but we also will want to make sure that we are not getting a poor deal because we are not paying enough. Therefore, we will probably want to look for a mortgage which offers us good value for money.
- Type of Mortgage – it is important to think about whether you want a fixed rate or variable rate mortgage. Fixed rate mortgages will tie you in for a period of time but you will know what rate you will be paying, it will not change. Variable rates could go up and you will have to be sure you can afford that. You also nee dto decide between repayment, where you repay some each month or interest only, where you only repay the interest and invest money to repay the balance at the end of the term.
- Repayments – it is really important to make sure that we are able to afford the repayments that we have to make. It is a good idea to therefore find out exactly how much money we need to repay each month from the lender. Then we will be able to work out whether we will be able to afford it. We will need to look back at previous bank statements in order to see how much we normally pay out each month as well to check how much we get paid and that should allow us to calculate whether we can afford the mortgage repayments. It is worth thinking about the fact that there is also a chance that the repayments might go up. If the Bank of England put up the base rate or if your lenders sees fit, they may increase what you have to pay in interest if you are on a variable rate and so you will need to allow for this in your calculations.
- Customer service – it can be nice if you know that the lender will provide a good level of customer service. When you have a query or question, you need to make sure that you will get a good answer to it. You want to make sure that you can get through easily and that you will get a fast and accurate response. You can find this out before you apply by getting in touch with the customer service department yourself.
- Lenders reputation – some people will also be interested in finding out more about the lender before taking out a mortgage with them. They might want to have a look at their history, read some reviews, ask people about their experiences or perhaps even use a lender that they have used before. It is a good idea to think about whether these things are important to you or whether anything else will be too.
Once you have established what you are looking for then you will be in position to find the mortgage which will be the best for you as you can see how well they match up to your requirements.