When looking for and comparing mortgages, there are some key points to look for. With all the information now available online, things can start to seem confusing and it's easy to get the information mixed up. Here's a simple dummies guide to the most important factors to look for when comparing mortgages.
Basically you'll be looking at either a repayment mortgage, or an interest-only mortgage, the main two types of mortgage in the UK which are based on how you repay them. It's also possible to have a combination of these.
To make the best decision for you, these are the key points you need to consider:
- the amount (based on how much you can afford to borrow, property price and the disposition of the lender )
- the term (how long you borrow for, average is 25 years)
- the mortgage (repayment or interest-only)
- the interest deal (fixed-rate or a discounted variable interest- these are the most common)
- the term of the interest deal (ranging from a few months or years, to the full term of the mortgage)
- the lender (bank, building society or financial institution)
It's a good idea to also check your credit report in advance to know what your chances might be of getting the mortgage you want. But beware! Many loan sites offer a free credit check online, but fail to mention that this can put you at risk. If they carry out a credit check on your behalf, this can appear to other lenders as a failed mortgage request. A better solution to checking your credit report is to consult an independent mortgage adviser who can make anonymous checks on your behalf, without any risk of damaging your credit history.