If your mortgage if up for a renewal, don’t just go with whatever your current lender is offering you! It’s true, it might be the best deal, but what if it isn’t and you end up paying hundreds or thousands of pounds more yearly?
We cannot stress enough how important it is to shop around for the best mortgage deal out there for your circumstances. Many of our clients ask for our advice and they all walk away delighted with the kinds of savings we can offer.
But here is what you need to know in order to find the best mortgage deal for you:
Work on making sure your Credit Score is in ship shape
Many lenders will want to see your history and the better your credit score, the better deals you can secure. Paying with Direct Debits and on time, being registered on the Electoral Roll, having a stable address and more factors go into your credit score and it impacts your ability to secure a better mortgage deal, so it pays off to be disciplined with your finances.
Are you looking for an interest-only or repayment mortgage?
An interest-only mortgage only pays the lender their interest which means you are not paying your actual debt at the same time, but it comes at a smaller monthly amount to be paid out. A repayment mortgage will allow you to build equity as well as pay interest. Depending on your circumstances, you might want to opt on one or the other.
Are you looking for a fixed or variable interest rate?
A variable interest rate follows the ups and downs of the interest rate established by the Bank of England, while with a fixed rate you will have a guaranteed rate for a fix number of years. To make matters more complex, the variable interest rate mortgages can be tracker, standard variable mortgages or discount rate mortgages.
You can also opt for a capped deal, which means that any of the variable interest rates you choose will be capped at a certain rate protecting you from too big swings on the market, although they are less popular nowadays.
At Mortgage Hub, we can advise on all these issues and more to make sure you get the best possible deal for your circumstances.
A wealth of industry experience is just the start of the range of expertise at The Mortgage Hub. We are a highly professional group of customer focused mortgage advisers who genuinely want to help you through your property and mortgage journey.
Take a moment to meet our team and feel free to drop us a line on any mortgage or insurance related matter – we really do want to help!
The Mortgage Hub is an independent mortgage advisor serving the greater Glasgow area. Whether you are planning to buy your very first home and need the right first time buyer mortgage, or are looking to re-mortgage due to a house move or to growing family – we understand your journey is so much more than a financial process, it’s a journey to achieve your dreams, improve your lifestyle and achieve your true potential.