Buying a property is likely going to be the biggest purchase you will make in your adult life. With all that money it may come as no surprise that choosing the right mortgage for you is especially important. How do you go about this though and where do you turn? For anyone new to this sort of thing, it can be especially daunting but with some advice and a little know how, you’ll soon learn the ins and outs of getting the perfect mortgage.
What is a Mortgage?
First things first, let’s look at what a mortgage actually is. A mortgage is a loan taken out to buy property or even just the land itself. These usually run for around 25 years but can go as high as 35. In essence the loan provider is purchasing the property with repayments being paid at a monthly rate. Should you not, then the lender can repossess.
Mortgages: Where to Start?
So where do you start? Well before you even sit down with anyone or even check out houses, you’ll want to collect all the information you can about yourself. Gather all your pay slips, grab your passport and calculate your average outgoings every month. When you go to any mortgage provider out there, they will ask to see evidence of any information you are giving them so it’s best to prepare it all up front.
Following this you can use the information on a few Affordability Calculators online. Simply enter in your details and the website will offer a summary of the amount they will be willing to loan you (of course given that the information you provided them is correct). However, don’t take this as 100% confirmation but at least it gives you an idea.
Different Options in Finding a Mortgage
There are a number of options available to you when it comes to moving forward and actually talking to a professional in the field:
1. You can go direct to the banks and building societies.
2. You may opt to go with an independent financial advisor or mortgage broker. Obviously going direct, you only receive the loans and rates that that specific bank or building society can offer you so be sure to visit multiple companies so you can compare.
3. While you can go visit a branch in person, a lot of companies actually offer the same services online. One best example? Newcastle Permanent does mortgages online.
4. An advisor or broker on the other hand will look at the entire market or at the very least a number of lenders on your behalf. While this is an efficient means of finding the best mortgage that suits you, you’ll also have to consider the charges you’ll incur for their time.
Taking the plunge and purchasing a new home is a big step for anyone and the preliminary phase is often the most important to get right. Remember that organisation is key and comparing as many banks and building societies as possible will help in finding you the best rate and best deal. Before you know it, you’ll be hunting for your perfect home!