Finding the Best Mortgage Deal - A Beginner’s Guide
Finding the best mortgage for your needs has never been more important - or harder - than it is today.
A good starting point for learning about mortgages is this information from the Council of Mortgage Lenders, but that will only help you understand mortgages - not find one. Finding the right mortgage can be time-consuming and hard work, but it doesn’t have to be.
In this article, I’ll explain how and where you can find mortgages and what the pros and cons of each option are likely to be. I’ll also provide some tips that should help you find the best mortgage deal for you.
Where Should I Go to Get a Mortgage?
Despite a reduction in the number of mortgages on the market, there are still a number of different places you can go to arrange a mortgage (including, of course, the internet).
Here’s a rundown on the main options:
The Internet
While the internet is a good source of information about mortgages, there aren’t many internet-only mortgages available. Use the internet to find product information and mortgage brokers - but expect to have to deal with real human beings if you want to find the best mortgage deal.
Estate Agents
It is a cast-iron certainty that once you have made a successful offer on a property (or even before you do), your estate agent will ask about your mortgage arrangements and offer to setup an interview with their mortgage adviser.
Getting a mortgage from an estate agent is not necessarily a bad idea, but you need to understand what’s on offer. Ask if their mortgage adviser is truly independent - i.e. can he search the whole mortgage market - and don’t agree to anything without getting some competing quotes from some of the other places I’ve listed in this article.
High Street Lenders
Walk up any high street, and you will see adverts for mortgage deals in the window of almost every bank and building society.
There is nothing to stop you going into each one and getting a mortgage quote - indeed, you could find a good deal this way.
The problem is that since these organisations can only offer their own products, getting several competitive quotes could take you a considerable amount of time…
Independent Mortgage Brokers
Sometimes known as mortgage advisers or independent financial advisers (these sell other products, too), independent mortgage brokers have access to the whole mortgage market, excluding a few deals where you have to go direct to the lender.
Indeed, mortgage brokers can often access deals that are not available directly from lenders - especially if you are looking for a bad credit mortgage or a self-certified deal.
To get the best mortgage rates UK mortgage brokers have a special computer database that allows them to enter all of your details once and search the whole market. This means you can effectively get an instant quote from every suitable lender in the UK. Just like that.
Using a mortgage broker is often the fastest way to find the best mortgage deal for you and it is certainly an option you should try. To make sure you have been offered the best deal, it is a good idea to get a quote from more than one broker or to try going direct to one or two high street lenders, too.
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