Navigating The Mortgage Maze

Navigating your way through the mortgage maze is not easy. That’s why we’re here to help you. We understand which deals you are most likely to be accepted for and can help you to find the right mortgage for your circumstances. 

How much equity do you have?

If you’re a first-time buyer, the larger the deposit you have, the greater chance you have of securing competitive mortgage rates. The same applies when remortgaging – the more equity you have in your home, the more favourable your remortgage options are likely to be.

Those with a high ‘loan-to-value’ or LTV (meaning a small deposit or little equity) may find their options more limited. Although some lenders withdrew high LTV mortgages when the pandemic first struck, lenders have started to return; good news for many. 

Do you want a fixed or variable rate?

Fixed rate mortgages offer a fixed rate of interest for a specified amount of time – typically two, three, five or ten years. This can be a good option if you want the security of knowing exactly how much you are paying each month so you can budget accordingly.

Variable rate mortgages often track the Bank of England base rate and will rise and fall in line with this. This means if the base rate increases by a set percentage, your mortgage rate and your monthly repayments would also go up. Should the base rate fall, so would your monthly mortgage repayments.

How much are mortgage fees?

Mortgage fees are another consideration. Many mortgages come with an arrangement or booking fee that can be anywhere between zero and £2,000.

Some of the most competitive mortgage rates come with higher fees. It’s possible you could save money by having a mortgage with a slightly higher interest rate but lower fee.

You will also need to budget for valuation costs and legal fees. 

Improve your chances
When applying for a mortgage, lenders will scrutinise your finances to weigh up whether you would be able to afford to take on the loan and whether they are happy to lend to you. To increase your chances of getting accepted for a mortgage, it is worth going through your bank statements and closing or cancelling any accounts, subscriptions or memberships you no longer need.

It can also be worth using some of your savings to pay down debts such as credit cards and loans, as well as checking your credit score and taking steps to improve it if necessary.

We know the market
The easiest way to find the right mortgage for you and your circumstances, is to speak to us. We have access to a wide range of mortgage products, and can assess your situation and advise on which mortgage best suits your circumstances. Get in touch, we can support you through the process.

Your home may be repossessed if you do not keep up repayments on your mortgage

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