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Mortgages

Whether you are a first time buyer or are looking to move homes, mortgages continue to be the prime source of funding on property transactions. There are several mortgage products available currently and all offer varying mixtures of capital and interest payments. Re mortgage products to release equity in existing homes is a popular feature and provided you release less than the equity available, you may be able to negotiate better terms. The government has also been intervening to help first time buyers with getting on the property ladder through ownership sharing schemes - essentially reducing the mortgage % taken out.

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If you are looking for a mortgage or re-mortgage, approaching you existing banks or building societies would be a normal approach or a first step. This could become too much of a comfort zone and you could end up just accepting what even mortgage rate / terms your bank may offer. The key thing to bear in mind is that finding the right mortgage deal takes time and effort and usually required a lot of shopping around. Don’t just limit yourself to you bank or a couple of banks, use brokers and the more you shop around the more informed and better decision you will make. Usually mortgage rates and terms can be found on line and internet mortgage  hunting can be fruitful.

There are several mortgage products in the market with fixed and variable rates containing combinations of capital repayment and interest only mortgages. For example a popular variable rate mortgage is the tracker mortgage with varies according to the index it tracks. If you want less risk and want to know exactly how much you spend, a fixed rate mortgages maybe best suited to you. A bank or a financial advisor would be able to explain all these products to you and you should aim to match the product to your long term financial objectives.

If you are worried about your credit rating it is always best to get a credit check before applying for a credit card.

Once you have found the mortgage you like and can afford, the next bit is the application which rests on your income, affordability and credit score. Initial deposits against mortgages can range from 10% to 30% depending on the latter. At this point it would be worthwhile discussing the fees and costs in detail with your bank to make sure you are happy with the terms and the rates. You should ideally have you mortgage arranged and happy with before finding the property.

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