When you want to get a mortgage, you want the best mortgage rate you can find. Mortgage rates today are still advantageous but finding the best rate can be overwhelming.
The best way to find the right deal for you is to use a mortgage broker. They can explain the best deals to you in a language you’ll understand. That way you won’t be bogged down with numbers and percentages.
You can talk to them about the kind of mortgage that will suit you. For example, there are fixed rate mortgages and tracker mortgages. Which one should you choose? Basically, a tracker mortgage will move in line with the Bank of England base rate, so it can go up or down.
A fixed rate mortgage will not change. They will stay at the same rate for a certain number of years. Usually it’s between 2 to 5. When the time is up your mortgage will then convert to a type of variable mortgage. This means the interest rate can be set by the lender.
The best way to secure the best interest rate deal is to take the following steps:
Work out your budget
Decide how much deposit you are going to put down. The more you can put down the better interest rate deal you will get. This is because you’ll be considered a lower lending risk.
Check your credit score
Get your credit score from each of the three main credit agencies. These are Experian, Callcredit and Equifax. Check the file to make sure the information the agencies have is correct. If there is anything wrong get it in touch with the agency immediately.
Find a broker
A broker will explain the different mortgage options available. They can explain the figures and then you can decide which one is best for you.
You can find a mortgage broker online. The Mortgage Hut for example shows you the day’s mortgage rates and it also has a mortgage calculator which will give you an idea of the costs involved in a property purchase. Mortgage brokers do charge a fee for their work. It is worth paying because they will be with you through the whole process with valuable help and advice.