Choosing the right mortgage

Choosing the right mortgage deal can be difficult if you are not aware of the key areas to consider and the possible pitfalls that could lay ahead. So when you are looking to make one of the biggest decisions in your life make sure you fully understand what you are committing to.

Where do you start – Which Lender?

Before you look at the actual mortgage type you go for, think about where you are going to get the mortgage from.  The mortgage lender market is vast and you will certainly not have the time and resources to check them all out, however you can make your life easier by considering the following:

• Speak to a financial advisor who specialises in loan lending and mortgages.
• Don’t try and re-invent the wheel many other people have probably just gone through what you are about to embark upon.  Speak to family and friends and ask them questions about lenders, the mortgage process, how they found it anda any recommendations.
• Visiting the main high street lenders may be one option, but remember they can only discuss their products.
• Use a specialist mortgage broker who can search through thousands of mortgage products across numerous lenders.  Important, some brokers may not have access to the entire market database.
• Use online comparison sites like UKQuotes to help you find the best lender and mortgage product.

Choose a mortgage to suit you

One of the most important things to consider when choosing the right mortgage is to make sure the mortgage product fits around you requirements.  Some of the things you may want to consider are:

• Are you looking for the cheapest mortgage payments a month? Does that include making capital repayments?
• Do you need flexibility from your mortgage product? For example, do you need to be able to make monthly overpayments or even underpayments, take a time off where you don’t pay?
• Do you need a mortgage product that calculates interest rates daily?
• Do you need you monthly payments to remain the same every month? For example a fixed rate mortgage would provide you this, but then you cannot benefit from any interest rate reductions.
• Is there any tie in periods? How long to you want to commit to the mortgage product and what are the costs should you wish to come out of the agreement?
• What other fees are associated with the mortgage? For example, arrangement and valuation fees.

Mortgage Guide
Understanding mortgages Financing your mortgage Mortgage types Mortgage types explained What is HIPS? Choosing the right mortgage Mortgage protection cover Switching your mortgage	"Choosing the right mortgage is very important so make sure you compare deals before commiting to them"