Finding the best mortgage deal takes time and effort but it is well worth it, given it could save you £100s each month.
This step-by-step guide outlines how to find the best mortgage deal in 2020.
1. Decide what type of mortgage you want
Do your research before you start your mortgage search so that you know what you want.
Decide whether you want a repayment or interest-only mortgage, a fixed or variable rate mortgage.
There are also Help to Buy mortgage options for first-time buyers looking to get on the property ladder.
2. Get an idea of available rates
Compare rates of different mortgage types and the comparable rates between lenders.
Available rates will depend on the size of your deposit and also on the value of the property you are looking to purchase.
It is important to not simply go for the cheapest deal at your existing bank but to also consider a range of mortgage options at different lenders. Perform a thorough analysis and compare mortgage offers.
3. Get advice from a mortgage broker
Once you’ve found a good rate for the type of mortgage you’re looking for, get advice from a mortgage broker to see if they can beat it or come up with alternatives.
Brokers know key details about lenders’ criteria so can advise you about which lenders won’t lend for the type of property you are looking to buy, and conversely, recommend those that will.
4. Carefully check mortgage paperwork
When you receive a mortgage offer, be sure to read the Key Facts information and check it is all correct.
The mortgage offer will include a lot of paperwork to read through and it is important to check the details such as your name, the date and the loan amount.
Pay close attention to fees and repayment charges and be sure that it reflects what you have agreed with the lender.
There are some good mortgage deals available in 2020, especially since the Bank of England’s base rate cut in March.
Be sure to carry out a thorough search of available mortgage rate options before deciding which mortgage to commit to.