Cheap mortgage: What to watch out for when choosing best mortgage deal for you

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From rates to the repayment-period, there can be a lot to consider when it comes to applying for a mortgage. With the average mortgage term lasting 25 years, according to the Money Advice Service, getting the right mortgage deals during this time of one’s life may very well be of the utmost importance. Chris Bailey, a mortgage expert at Mojo Mortgages, has shared some insight into finding a mortgage deal which suits each individual’s situation.

He told Express.co.uk: “There definitely is such thing as a cheap mortgage, however it is dependent on certain circumstances.

“Cheap mortgages are possible on lower risk transactions, such as mid-term remortgages where the aim is to get a near market leading rate, fixed for up to five years.

“Additionally, this can be done without fees, as the lender will foot the bill for the legal costs and valuations.”

And, according to Mr Bailey, there are some situations where lenders could end up giving the borrower money in order to make the move.

“In some cases they even pay you £500/£1000 to do it, consequently you can literally be paid/make money by switching mortgages,” he said.

“Hiring a free broker is another way to cut costs, and you don’t even really need to do anything.

“At Mojo, we generally try to steer people towards the lowest cost deal, if someone had particular preferences towards ‘lowest premium’ or a higher rate with zero fee’s, we may have to recommend something different but generally we’ll offer the cheapest mortgage as the best deal.”

What does the mortgage expert advise when it comes to getting the best mortgage rate for their financial situation?

“I think good advice is key as information surrounding mortgage rates can become quite complicated,” he said.

“But really it’s essential to work out the overall cost of a deal rather than focusing purely on the rate.”

Mr Bailey also offered some top tips on getting a cheap mortgage, and it seems that that may mean seeking the help of a mortgage broker – but not one that charges a fee, he insisted.

“Using a good broker is of the utmost importance as getting good advice is the key to getting a good/cheap mortgage,” he said.

Mr Bailey also warned that borrowers should watch out for brokers charging a fee, or lenders on restricted panels – with the latter potentially meaning one needs to pay fees for two lots of solicitors fees.

He told Express.co.uk: “Other tips include making sure you watch out for restricted panels or fees – if a broker charges a fee it can completely remove the benefit of switching in the first place.

“Secondly, don’t focus on rate, instead look at how long you’re getting the deal for two, five, 10 years.

“Ensure you know how much you’re paying for the mortgage, whether there’s any application or booking fees – and check who’s paying for the extras such as solicitors and valuation costs. You don’t want to be caught further down the line.

“Finally look out for cash back incentives and factor it all into the total cost, as these incentives can take a fair chunk out of your overall mortgage.”

READ MORE: Stamp Duty Land Tax UK: Can stamp duty be added to a mortgage? When SDLT must be paid

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