When looking for a mortgage deal, it is never a one stop shopping spree. Infact, buying that house you are looking for a mortgage for, is probably the biggest purchase you are ever going to make and the mortgage rate and deal you choose will make a huge difference to your savings and future finances. So before making up your mind, you need to learn about the best mortgage rates in Surrey and weigh other factors that might impact the total cost. Here are a few things you need to keep in mind:
1. Compare interest rates
Interest rates are one of the most significant factors when deciding on a mortgage deal. Obviously, a mortgage deal that comes with a lower interest rate will save you more money but similarly, it is important that you choose the correct deal for you. You can also work on decreasing your interest regardless of the broker by working on your credit, increasing down payment etc.
2. Mortgage fees
Interest rate isn’t the only thing that is going to cost you in a mortgage deal which is why you need to consider the mortgage fees too. Usually, brokers tend to divide the mortgage fees among various types of fees that end up being hidden charges which you need to be on the look out for. Arrangement fees or booking fees, valuation fees and legal fees are some of the fees brokers expect you to pay for.
Mortgage deals that offer the least interest rates usually come with a hefty fee. Some dealers let you to add the broker fee to your mortgage balance, however, that is unadvised since in such a case you’ll need to pay interest on that too.
3. Quality check
Before choosing a certain mortgage broker or lender to finalize your mortgage deal with, its important to do a background check. You can compare the broker’s reputation with others via customer service and client reviews. After all, do you really want to take a risk with one of the most important financial decisions of your life?
Quite a few lenders offer incentives like cashback to attract potential customers. However, all that glitters is not gold and what clients usually do not consider is that they;ll probably end up paying more in the long run. Statistics show that 25 percent of first time buyers are more attracted to such deals, even though the cashback hardly makes a significant difference in the long term period.
5. Banks or builders
A large percentage of people start with their mortgage hunting at their own bank. However, banks almost never offer the best deals. Infact, building societies are some of the most under rated mortgage brokers and lenders. Which is why you should include building societies in your search of the best deal to get the full picture.
So, the next time you think you have found your future house, follow these tips to get the best mortgage deal out there.