Published on August 9th, 2015 | by Pete0
How to Get the Best Mortgage Deal
Buying a home is likely to be the largest purchase you will make in your lifetime. Whether it’s your first three bedroom semi-detached or final 12-bedroom mansion after you’ve won the lottery/worked your way up to CEO level, it will be a significant amount you spend.
It is also one of the only situations where the majority of people take out a loan to cover the costs. Few can afford a house outright so getting help from their bank, building society or elsewhere is necessary. For such a large amount it is important to try and get the best possible deal through a number of methods.
Not in a dressing up and slapping on lots of make-up way, but in an attractive to lenders sense. As mortgage providers will be lending a lot of money to new homeowners they want to feel like you are a safe bet.
Appear like a good option by ensuring you are on the electoral roll and all your address and personal information is correct, as they will check everything. Having a good credit rating is extremely helpful so check everything is in line. You could even get a credit card, take out some money and pay back on time to look good when borrowing money.
Aim for a High Deposit
Every mortgage requires a deposit to be paid up front before allowing you to take one out. This shows the lender that you possess the required finances. The size of this determines the interest rate you will pay and the amount each month.
For this reason it is best to try and save up as large a deposit as possible before going in to buy a house. Overall you will end up spending less over time with a larger deposit, so waiting it out can be worth it.
Use Professional Mortgages
Some of the best rates are attached to specially designed mortgages, such as professional mortgages from Saffron Building Society. These are available to people working in specific professions (such as doctors, accountants, teachers and more).
They offer much better interest rates, again varying depending on the deposit, and should be taken advantage of if you work in such a profession. If not it is worth searching around for other specialised mortgage deals you may qualify for, whether due to your profession, social situation or other factors. The more research you do the better the mortgage you will receive.