Our Top 5 Mortgage Tips

10 January 2018

Buying a house is one the biggest commitments you will make in your lifetime. Let us take some of the stress out of the process with our top 5 tips to finding the best mortgage deal for you…

1. Affordability
Affordability of your Mortgage is crucial and therefore you need to work out how much you can reasonably afford to borrow and physically pay. Not only is there the cost of your Mortgage but also council tax, gas and electricity bills and insurances, not to mention keeping some money aside for socialising and holidays! You must not agree to a loan, even if offered, that you will struggle or fail to repay. Following the Mortgage Market Review, it has made it harder to find yourself in this position as Mortgage lenders look into more detail regarding your finances and what your realistic budget may be, however you still need to be confident you can afford your Mortgage comfortably.

2. Fees
It is critical to look at the fees associated with arranging a Mortgage and you should always consider these carefully. Although some Mortgage rates may appear cheap on the face of it, they may come with hefty fees, so you’ll need to calculate exactly how much you will be paying overall to establish if this really is the best deal for you!

3. Early Repayment Charges
Most Mortgages have a fee called an Early Repayment Charge which can tie you into the Mortgage rate you are on for a specific amount of time. As a result of this you will be hit with a potentially substantial charge to pay should you wish to exit the Mortgage deal early. It is therefore important to understand this charge, how much it might be and how long you are tied into this rate for. If your circumstances mean you may look to repay or move your Mortgage during this time you may need to consider a Mortgage without repayment charges to avoid paying any unwanted charges

4. Incentives
A number of Mortgage lenders offer incentives that on the face of it look appealing. These incentives can include items such as free legal fees, a free valuation and sometimes cashback once your Mortgage completes. However, it’s important that you understand whether these incentives really are as good as they appear as they can be worked into the total cost of your Mortgage deal. We can assist you in calculating how much these incentives will affect the overall costs, as you may find more competitive rates with Mortgages that don’t include these incentives.

5. Always Shop around
Using an Independent Mortgage Consultant will ensure you have access to the whole market and the recommendation will be tailored to your own financial circumstances. Book an appointment with one of our team of independent Mortgage advisers for a no obligation conversation about how Peritus can assist you with finding the right Mortgage for you.

Download one or all of our FREE pdf guides for mortgages

Peritus Private Finance can assist you with understanding all of these important areas and help to source the most suitable Mortgage products for your circumstances. Give us a call on 020 3745 5893 and we can put you in touch with one of our team of consultants.

Peritus Private Finance Limited is authorised and regulated by the Financial Conduct Authority.