It can be difficult getting the right mortgage for the property you want to buy. With so many offers and facts and figures to absorb, people often don’t research the market well enough because it’s too confusing.
That’s where a Mortgage Broker in London is invaluable. They are specialist in their field and they know how to find the best deals for each person’s circumstances. If you need a:
· First time buyer mortgage
· Bad credit mortgage
· Buy to Let mortgage
· Short lease mortgage
· Large mortgage
· Offset mortgages
· Freelance mortgage
What Do They Do?
Firstly, they’ll talk to you about the type of loan that’s best for you. That means they’ll ask you about your budget and the amount of monthly payment you can afford. Next, they’ll go through your mortgage options. For example, you might have the choice between a tracker mortgage and a fixed rate mortgage. Your broker will explain how each type works and how much you can expect to pay for each one.
After that it’s time to discuss your credit rating. It is best to find out what credit rating you have before you apply for a mortgage. Your credit file is held with a credit agency. The three largest agencies in the UK are Experian, Callcredit and Equifax.
Your credit file will have details of your financial transactions. If you have made late payments or missed payments for example, on a credit card it will be on your credit file. Any County Court Judgments or Bankruptcy proceedings will also show up and remain on your file for six years.
Your credit score is a number. If you have a low number, it means you have a poor credit rating. The higher the number, the better your rating. Knowing your score will help a broker target the lenders who meet your criteria.
Finally, they will talk to you about your deposit. To get the lowest rates, you’ll need a 25% deposit. But, if you don’t have that amount, you can still get a mortgage. If you only have 10% that’s fine, but you will have to pay a higher interest rate than someone with more to put down.
Getting the Best Deal
Your London mortgage broker will then have a good idea what type of mortgage to look for. They will then begin their search and come up various deals for you to consider. Once you have made up your mind your mortgage broker will help you with the paperwork for the application.