With rising household bills, switching your mortgage could be one way to save some money. As competition hots up between lenders there are plenty of low rates to choose from. Many of the deals are below 1 per cent.
Here are top tips to choosing a mortgage.
Know your budget. List all you’re your expenses and see what surplus is left over.
Decide which mortgage is right for you. Many people prefer the security of a fixed rate. With variable rates your mortgage payment will change as interest rates change.
Look at the whole deal. Don’t just look at the interest rate. Consider application fees, arrangement fees, early repayment charges.
Talk to a Mortgage Broker. Mortgage Advisors continuously search mortgage deals and can advise on the best option for your circumstances. Some of the best deals are only available through mortgage brokers. Get in touch with a local mortgage broker.
Get your paperwork ready. Have at least 3 months bank statements and payslips for proof of income. If you are self-employed most lenders will require at least 2 years accounts. Proof of identity and proof of current address is required.
Check your credit file. Get a copy of your credit report to check that there is no adverse credit registered. Some lenders will decline an application based on the information on your credit file.
Job consistency. Lenders like to see you have been in your current job for at least 3 to 6 months and will need confirmation that the role is permanent.
The larger the deposit the better. Lenders reserve their best rates for those with larger deposits. The more money you can put towards the purchase, the greater choice of mortgages you will have.
Minimise your debts. Try to reduce any debts that you have before applying for a mortgage. This demonstrates to the lender that you can manage money effectively. It could also mean that you will qualify for a larger mortgage when it comes to the lender’s affordability calculations.
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