Best UK Mortgages

Surprisingly, and despite many warnings in the financial pages and TV programmes, many people take the first mortgages offered to them by their estate agent. This is understandable in some ways, as estate agents want mortgages arranged quickly in order for house purchases to proceed quickly. But you are unlikely to get the best deal this way, as estate agents are unlikely to be completely independent.

Some people also will go to their local bank or building society and take the first deal offered to them on that lender's standard variable rate. This is strange, because it is possible to save thousands of pounds every year by shopping around all the mortgages in the market, and with the mortgage being the biggest commitment financially in a person's life, they are very much advised to do as much research as possible.

Others jump at the lowest initial interest rate they can find, which in the long term is rarely the best idea, as lenders will make you pay dearly for the privilege of that interest rate. Many lenders offer a low interest rate followed by you being stuck on a very expensive standard variable rate for a long period after the deal ends, tied in by large and punitive redemption penalties. Some people like the stability of the fixed rate, and find themselves with 5 year deals on a fixed rate, only to see interest rates fall and their payments stay the same, again held at that level by punitive redemption penalties.

Some people go for current account mortgages, where they can borrow large amounts of money to fund purchases or pay off large amounts of the mortgage at once with no penalty. These mortgages are only for the very disciplined though. This is the same with flexible mortgages, which allow underpayments and overpayments in return for a higher interest rate, but should only be taken up by people who will actually use the facilities, and many people, whose incomes are steady, may not.

So, the best mortgage for you is exactly that, the best mortgages for you, not the cheapest or the most flexible, but whatever suits you best. Do you really need the flexible terms, and will you use them? Is the security of a fixed rate really so important to you? Are you prepared to be stuck on an uncompetitive rate for years just for the benefit of a low interest rate for the first two years? Independent mortgage brokers carry out a fact find and then recommend a mortgage to suit your needs. A tied agent will find you the best product from the range at their disposal. You should use the internet to research the market as well.

 

 

 

© AskFinancially.com 2008

Mortgages Intro

> UK Mortgages
> Bad Credit
> Best Rates
> Buy To Let
> Cheap Rates
> Compare
> Current Account
> First Time Buyer
> Flexible
> Interest Only
> Non Status
> Remortgages
> Repayment
> Second Mortgage
> Self Certified
> Mortgage Brokers
> Mortgage Calculator
> Advice

Insurance & Loans

Copyright