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Methods of getting the best mortgage deal are a highly debateable issue. Different people would advocate different opinions regarding the same depending upon their experiences. These tips though may not guarantee a perfect method to get the best deal but is sure to make you aware of the aspects involved and will draw your attention to the key issues while applying for a mortgage.
1. Find out the types of mortgage options available to you.
2. Get your broker or financial advisor to explain the different types of loans to you. Get your basics clear on fixed rates, discounted rates, capped rates, flexible mortgages, and current account mortgages and cash backs.
3. Check out about any special deals that may be available to first-time buyers.
4. Get quotes from different lenders, which will give you an idea of what your monthly payments will be like.
5. Check out about redemption penalties. Redemption penalties could tie you to the lender's standard variable rate after the discount, fixed or capped period ends making the deal less beneficial to you.
6. Find out specifically about what happens at the end of the discounted period - Whether you will be automatically shifted to the standard variable rate or will be given a choice of any new products that may be available.
7. Ask about any incentives such as paying the valuation or legal fees that the lender may be using as a marketing tool.
8. Find out about any "arrangement fee" that you may have to pay as this may then neutralise the benefits you might otherwise be getting.
9. Many lenders keep the building and content insurance as part of the package from which you cannot opt out. They may not then offer the cheapest rates or the best products, so your best bet is still to shop around.
10. There is something called the Mortgage Indemnity Guarantee (MIG). Some lenders charge this on mortgage representing 75% or more of the value of the property. It is insurance for the lender in case you default on your loan repayments and offers you no cover at all. The cost can be in thousands, so be aware.
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