5 Key Factors When Applying for a Mortgage
When moving home, it is important to choose the right property. For many buyers, you will just know the one when you see it. Equally important is finding the right deal for your mortgage. When looking for that perfect mortgage deal, there are a few things you need to take into consideration.
How Big is the Deposit?
Regardless of the size or type of the property, and indeed your credit history, the size of your deposit will play a significant part in your choice of mortgage options. The rise of high loan to value (LTV) lending has led to smaller deposit mortgages becoming more readily available, and each lender has their own strategy on pricing their mortgage deals in relation to the size of the deposits. However, every homebuyer needs to consider the size of their deposit and whether they can realistically afford it.
Fixed or Variable?
Choosing whether to go for a fixed or variable interest rate is a very challenging dilemma. It is very difficult to predict the future fluctuations of the market and decide what may work best for you for your own individual circumstances. The period of time for which you choose for your mortgage deal is also a difficult factor, when these can range from the short term of two years or on occasion the full lifetime of your mortgage.
Are the Repayments Affordable?
Long term financial planning is of paramount importance when applying for a mortgage, and what may seem like the correct choice at the time, may cause considerable stress further down the line. Think about the quoted repayments and whether they will be affordable in the long term taking into consideration any possible rate rises and indeed any possible life changing events.
Is the Application Process Easy?
Before you sign anything, it is important to be sure that you understand the mortgage terms and the application process. You are likely to be tied into a mortgage for a period of time, so it is important that you read and understand all of the small print.
Should I Use a Broker?
The answer to this we believe is simple, yes. A broker can help find you the best deals, often having far greater access to mortgage lenders, including those not necessarily on the high street. For buyers with adverse credit history, or specialist circumstances, using a broker is probably even more important.
For more information on applying for a mortgage, or to begin your application, give your local Mortgage Centre a call, or use our contact form.