Achieving a competitive mortgage offer.

Working out which type of mortgage best suits your needs

There are so many types of mortgage products available in the market. These include fixed rates, trackers, variable rates and offsets, in addition to working out the mortgage type, you also need to work out what loan to value level (LTV) you are looking for. This relates to the amount of deposit you have - the higher your deposit, the lower the LTV level you require.

Note that high LTV deals for smaller deposit buyers come with higher rates, so it pays to save as much money as you can when buying a home.

Fixed rate mortgage versus variable rate.

It’s important to remember that a fixed rate deal offers a level of security, in that you know exactly what your repayments will be for the term agreed. It’s definitely a product for risk averse buyers. With a variable rate your monthly payment will increase/decrease in line with any interest rate changes. With interest rates currently sitting at 0.5% and no likely change in the near future, seek advice as to which would really be the best product for your needs.

Mortgage fees.

It’s vital not to forget fees. When these are factored in, they can change a highly competitive deal into one that is less so. For this reason, make a ‘like for like’ product comparison to make sure you end up with the most affordable product overall.

When comparing differing mortgage terms, rates, fees, incentives and mortgage types, calculations can get very complex very quickly. For this reason, it’s better to seek ‘whole of market’ advice from an impartial expert.

Choosing the right mortgage broker is vital to getting the most competitive mortgage offer possible, therefore contact us at Deal Direct.

For impartial advice and a low rate quote call 0800 048 8828.