It is not always easy to find a mortgage that is both suitable and affordable, and this has never been more true than it is today, when credit conditions are so difficult and many people are trying to cope with overstretched finances. However, no matter how tempting it may seem it is important that you never rush into this type of financial commitment, and that you take the time to follow some steps that could potentially help you to get a better package on your mortgage loan, saving you substantial amounts of money over the long term.
It is a big mistake to assume that you are going to get the most affordable mortgage package from your own bank, even if you are a long standing customers, as the interest of the bank will lie in making money not saving you money. In some cases you may even end up paying more for your mortgage with your own bank than a new customer would pay, because the bank may be offering special rates to pull in new customers leaving existing customers stuck with high rates and less than impressive mortgage packages.
Taking the time to shop around and look at different mortgages and products from different lenders is very important if you want to increase your chances of getting a great mortgage deal. With interest rates, upfront costs, and terms all varying widely from one lender to another you risk missing out on a great offer if you do not compare packages from different lenders. You can compare easily and quickly online.
Speaking to an experienced mortgage broker is another way of getting a good offer on a mortgage, as many brokers will have access to a wide range of lenders that cater for your needs. However, when you speak to a broker as if they cover the whole of the market rather than just a portion of it, as a whole of market broker will boost your chances of getting a suitable, competitively priced mortgage.
You also need to know which areas of mortgage to compare whether you are looking at fixed rate mortgages or other types, as again this will help to boost the chances of finding the most suitable and affordable loan. Some of the areas to look at and compare include any upfront fees and charges, the terms and conditions of the mortgage, the repayment periods on offer, the eligibility requirements from the lender, and of course the typical APR that is charged on the loan.
You need to make sure that you can feasibly and comfortably afford repayments on any mortgage that you are considering taking out, so make sure that you ask the lender to provide you with an APR and monthly repayment quote, as well as details of all additional costs, so that you know just what you will be paying.
Although having payment protection insurance, or PPI, in place is important you should remember that there is nothing to say that you have to take this from your lender. You can shop around for your PPI in order to try and get the best offer possible.