Tips to help you find the right mortgage

The world of mortgages can be a daunting and confusing one, and if you are a first time buyer you could quickly find yourself out of your depth when trying to find the most suitable mortgage.

Although the last six months or so has seen a significant reduction in the range of mortgages available, as well as an increase in eligibility criteria and interest rates – all stemming from problems caused by the global credit crunch – there are still an array of different mortgage products to choose from.

It is important to make the right choice when it comes to your mortgage, as this is a long term financial commitment.

You should never be railroaded into taking out a particular mortgage product by any sales person or advisor, as at the end of the day you will be paying the mortgage and it is your home that will be at risk if you fail to keep up with repayments.

Therefore you should make sure that you do not rush into any decisions with regards to your mortgage, and always do as much research as possible into the different mortgage types on offer. Remember, you will have a number of decisions to make, such as whether you want a repayment or interest only mortgage, a fixed rate or variable rate mortgage, etc.

The good news is that in addition to finding plenty of information about different mortgage products online, you will also find that there are a number of other resources that you can use not only to find out more about different mortgages, but also to help you to find the best deal on a mortgage.

It can be a good idea to speak to friends and relations who already have mortgages, as the chances are that they have already done the research that you are about to embark upon, and they may therefore be able to offer some valuable tips and advice.

Of course, this doesn’t mean that you should rush into taking out the same mortgage that they have, but it is worth finding out the pros and cons of different mortgages from those that are not going to give you a distorted view and who have already taken on a mortgage.

When it comes to finding out which mortgage may be the best one for your needs it is advisable to seek professional advice from an industry expert, and an independent financial advisor can prove invaluable.

These experts can assess your needs, circumstances, and budget, and then suggest the most suitable options, although the final choice is ultimately yours with regards to which mortgage product you choose. You will find that many independent financial advisers do not charge you a fee, but take their fee by way of commission from the lender that they refer you to.

However, some people prefer to find an independent financial advisor that does charge a fee, as this ensure that the advice and referral is totally unbiased and is not based on how much commission the adviser will get from the lender.

Of course, you may find that you do not need a financial adviser, as you may have done extensive research and already decided what type of mortgage you want. The next step is to look for a competitive deal on your chosen mortgage type – something that has become increasingly difficult in the current financial climate.

You will find that many mortgage lenders operate online, so you will have no problems browsing, comparing, and applying for mortgages from the comfort and privacy of home using the Internet. However, if you feel that this is too time consuming or you want a little additional support in finding the most competitive mortgage then you may want to consider using the services of a mortgage broker.

These brokers have access to a wide pool of mortgage lenders, and can use the details that you provide in order to try and find the most competitive deal from amongst their lenders.

A broker can prove particularly useful for those with poor credit, as they tend to know from experience which lenders are most likely to consider bad credit mortgages, and this will save you the time and hassle of wasted applications.

It is worth bearing in mind that as a first time buyer the deals to which you have access may be far more limited in the current climate, and one of the reasons for this is that some lenders are demanding higher deposits than the traditional 5% in order to gain access to their most competitive deals.

Therefore, unless you have a substantial deposit and excellent credit history you may find that the rate and deal that you get is not going to be the best on the market.