If you are going to be paying into the same mortgage for the next few years, how do you make sure that the rate you have got is the best? Well, here are a few simple tips.
Getting the best deal out of your mortgage is essential if you want to make sure that you are saving money on your mortgage and seeing the best spending power out of your income. It is very rare for one of us to be able to choose to earn more, so making what we have got go further is the next best thing. And a saving with the monthly mortgage repayments is a saving that will potentially last a few years.
The first thing to do is before you even start to look around is to make sure that you are in the best possible state for a mortgage. This can potentially starts months before you take out that mortgage.
For a start, go to one of the major credit reference agencies and ask them to show you your credit reference file. Then, check it very carefully for ommissions and errors. If you have a loan that you have paid off that is not on there, or is not showing as paid off, then make sure they know about it and ask them how to correct the report. A mistake uncovered and fixed at this point could even be the difference between getting a mortgage offer and not. So, it is vital to check the report.
Also on this theme, not having a credit history can be a problem. If nothing else then if you have never had credit in the past it can be worth taking out a credit card and the moment it arrives cutting it in half. It sounds daft, but your future lender will see that you have had credit and not gone mad as it will show as always correctly paid off. But, why cut it up? Well if you are not used to credit cards then it prevents the temptation to run out to the shops and load it to the maximum. Just take care not to choose a card with an annual fee or a dormancy fee.
The best mortgage rate are usually offered to those with impecable credit histories and decent deposits. If you can find a house for which you can put down a deposit of 20% – 25% (depending on the lender), or you can wait to save that much or beg and borrow off family, then you should get a much better deal than if you have only a 10% deposit to put down.
Then you just need to speak to a qualified mortgage advisor to get the best deal. Go to one that can look at the entire market, not just one or two lenders. Talk to them about yoru circumstances and your financial preferences and they should be able to identify out of all of the mortgage products on the market which are most suitable for you.