Things To Consider When Comparing Mortgage Products 

If your fixed-rate mortgage deal is coming to an end, you may want to consider changing mortgage providers. Whilst you could stay with your current lender if they have a suitable mortgage product for you, you may be able to get a better deal elsewhere and it’s always recommended that you consider all of the other options available on the market before taking out a new mortgage with your current lender. 

It is likely that you will have lots of different mortgage products to choose from when you browse the whole mortgage market and deciding which will be best in your individual circumstances isn’t always easy. To help anyone who is currently trying to re-mortgage their property, we have put together a list of important things to consider whenever you’re comparing mortgage products from different lenders. 

The monthly repayment 

Of course, how much you need to pay towards your mortgage every month is always something you need to think about. It is essential to ensure that you’re able to keep up with your mortgage repayments and because a mortgage is a loan that’s secured on your property, not paying your mortgage can result in your home being repossessed. Whenever you’re comparing the monthly repayments for different mortgages, remember to look at what the payments would increase to once the fixed-rate mortgage deal ends too. 

The upfront fees

In addition to looking at how much a mortgage would cost you on a monthly basis, it is essential to consider any upfront costs. Generally speaking, there are several different fees you have to pay when you take out a new mortgage, such as; valuation fees, arrangement fees and application fees. Often, you have the option to pay these fees upfront or add them to your mortgage, and it’s worth exploring both of these options. Don’t forget to check what the early repayment charge is when you’re comparing mortgage fees as well. 

The interest rates 

Simply put, the interest rate of a mortgage is the amount you’re being charged for borrowing the money you need. Interest rates are expressed as percentages, making them fairly straightforward to compare. If you’re looking at fixed-rate mortgages, whether you’re wanting to fix in for two, three, five or ten years, the interest rate would remain the same for the duration of your mortgage deal. However, if you’re considering a variable mortgage like a Tracker,rates are much harder to predict as they can change from one month to the next. 

The mortgage repayment term 

When you take out a mortgage, you can decide how many years you would like to pay the loan back over. Traditionally, the repayment term for a residential mortgage is 25 years, however, some lenders may let you take your loan over a term of up to 40 years. Assuming the lender’s affordability rules work, you also often have the option to make the mortgage repayment term shorter if you would like to. The term you choose for a mortgage directly affects how much your monthly repayments cost though and it also impacts the total amount you end up paying back in the long run. 

Any added extras

It is becoming increasingly common for mortgage lenders to offer different incentives to applicants in an attempt to entice them into switching their mortgages. For example, some lenders offer you cashback when you choose one of their mortgage products and you can spend this however you’d like to. Whilst the added extras offered by mortgage lenders usually may not be of very high value, they are still worth considering when you’re comparing different mortgage options and they could be beneficial in the short term. 

Changing mortgage provider 

When you’re looking for a new mortgage deal, don’t hesitate to contact our team at Mortgage Required for some assistance. We have helped thousands of homeowners change mortgage providers over the years and we offer whole of market, professional and friendly mortgage advice. So, you can always rely on us to help you find the perfect mortgage deal, no matter what your needs may be. All our experienced mortgage advisors are able to advise on every aspect of the mortgage market too and switching mortgage lenders couldn’t be easier when you turn to us for assistance. 

Recent posts

The Financial Conduct Authority (FCA) has shared new changes to mortgage rules with the aim to simplify remortgaging, and encourage competition within the mortgage market.

Lloyds Banking Group has jumped on the bandwagon to boost lending for first-time buyers as they allocate an additional £4 billion to help first-time buyers on to the property ladder.

As the Loan to Income (LTI) cap has been increased to 5.5 times income, applicants who fit the First Time Buyer Boost criteria could borrow up to 22% more. 

The government is introducing mortgage reforms to boost homeownership, stimulate economic growth, and make the housing market more accessible, especially for first-time buyers.

Chancellor Rachel Reeves has announced the most significant mortgage reforms in over a decade—great news for those dreaming of homeownership.

Nationwide ease their ‘Helping Hand’ mortgage designed to help first-time buyers get onto the property ladder by allowing them to borrow up to six times their income.

 

Keeping the kids entertained over the six-week summer holidays isn’t always easy, especially with the cost-of-living making it even more difficult. Below is a list of fun, inexpensive ideas to do over the break

The Financial Conduct Authority (FCA) has published a discussion paper about the future of the mortgage market in a bid to improve access for first -time buyers, self-employed, and those borrowing in retirement.

Ever wondered where the most reasonably-priced towns for families to buy are? Property company, Zoopla has identified the top 10 towns for families to live in the UK by looking at the most affordable towns, and how many people are looking in that area.

There was a 32% increase last year in 100% loan-to-value (LTV) mortgages which are mortgages that require zero deposit. According to a recent report by chartered accountants and business advisers, Lubbock Fine, the reason behind this is buyers simply struggling to save enough for a deposit.