How can you be sure you have the best mortgage available?
8th March 2010
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With confidence returning to the housing market and more people looking to ensure that they are securing the best mortgage, one that will suite their particular situation and needs, how can you be sure that you have got the best available, the one that is most suitable for you?

When looking for a mortgage, there are a number of things that need to be considered such as:

The affordability – will the new mortgage payments be affordable – both now and for the longer term – what happens if rates rise more than expected, will your budget cope them?

Do you want a rate that will fluctuate with the Bank of England Base Rate as it rises and falls, or a rate that will stay stable, whatever the Base Rate does – even if this stability costs you more initially?

How long do you want to be tied into your mortgage for – is 2 years too short or 5 years too long?

Will you want to be making lump sum payments to pay off some of the capital and if so, could you want the money accessible at short notice – perhaps for an emergency or even to pay a tax bill at the end of the year?

Could you need more funds in the future to complete an extension to the property or fit a new kitchen or bathroom or for any other reason – it could be worth borrowing it at the outset of the mortgage, pay it back into the mortgage and draw it down when and if it is needed depending on circumstances.

These and many other questions need to be asked.  In the UK we are very fortunate to have a large variety of lenders, many of whom are looking to provide innovative products to enable the home buyer to have a mortgage that is almost tailor made to suite the borrower’s requirements.  The problem is that you cannot tell if the lender that you approach is the one who has the best product for you!

So back to the original question – ‘How can you be sure that you have got the best available, one that is most suitable for you?’

1) Speak to a truly Independent Mortgage Adviser (ensure that they deal with the whole of the market and do not just use a panel who represent the whole of the market and ideally someone who will look at every lender for you) before you start looking for your new home.  They will talk about your needs and aspirations and give an idea of what will be available to you and the costs involved.  They will also look at the long term affordability for you and your family.

2) Before you finalise your offer for your new home, speak to the adviser you intend to use to ensure that lenders criteria have not changed dramatically and that the cost of the mortgage has not risen since you last discussed the matter.

3) Start the ball rolling by completing a mortgage application as soon as you are able, following the agreement of the purchase – your adviser should be able to tell you if the product that is best for you is likely to be withdrawn, or if new products are to be launched that will affect their recommendation.

Armed with this information, you can be confident of getting the best mortgage, so now is the time to start the process...

Alpha Independent Mortgages can help with this , visit our website for more information:

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