Are You Making These BEST MORTGAGE RATES Mistakes?

The mortgage market has significantly changed within the last couple of years. The quantity of mortgage products available is a lot smaller than it used to be, 90% LTV mortgages have almost disappeared, and lenders generally are becoming a lot more careful. No longer do they allow citadel mortgages equal to 6 times your yearly profits, and for customers with weak credits rating, getting a mortgage is becoming extremely difficult. Despite the market meltdown, there are still some very nice mortgage deals available on the market. We give you 7 tips to help you get the very best mortgage rates:

1. Make sure you’ve got a large deposit: while 90% LTV mortgages might still be available from some lenders, the very best mortgage rates are usually available on significantly less than 75% LTV products. Be sure you save as much as you can for your upfront deposit.

2. Large deposits go a long way for remortgages aswell: because of the drop in property prices, you may well discover that the LTV for your property is higher than once you applied for your first mortgage. A choice could be to utilize the cash in your saving accounts towards a deposit in order to get a better remortgage deal.

3. Check your personal credit record: the buyers most suffering from the credit crunch are people who have bad credit, also called “sub prime”. If you bad credit, the rates available to you will be significantly higher because the lenders desire to protect themselves against the threat of lending money to someone with an unhealthy credit record. Be sure you check your credit record and take corrective steps to bring back things on the right track.

4. Speak to a specialist mortgage adviser: If you have got a special situation, for instance if you’re self-employed, it is really important that you talk with a mortgage adviser. An excellent mortgage adviser will continue to work with you to understand your personal situation and find out the best products available for your circumstances.

5. Go for fixed rate products if you need security: fixed amount mortgages guarantee that your mortgage repayments will stay exactly the same and will not fluctuate with improvements in the Bank of England interest rate. This security comes at a price though, as fixed rate mortgage deals are generally less competitive than variable rate products.

6. Choose a tracker mortgage for the best rates: tracker mortgages rates fluctuate with the bank of England base price. The rates offered for tracker mortgages are in general lower than fixed rate mortgages. There continually the risk though that the base rate could go up and result in higher mortgage payments if you choose a tracker mortgage.

7. Be careful with the arrangement fees: the very best mortgage deals sometimes come with high arrangement fees. It’s important that you calculate the price of the mortgage over the entire term, taking the set up fees into account, to find out what is the best mortgage deal for the situation