Mortgage Do’s and Don’ts
Your home is likely to be your most expensive purchase – ever. So getting the finance right is vital. Check these quick but crucial tips on how to get the best mortgage for your budget when buying a new home.
Don’t accept the first mortgage offered to you by your bank. Shop around to see whether it’s competitive.
Do use an independent mortgage broker to find a home loan; this can save you time and effort searching the market for the best deal.
Don’t overstretch yourself: Work out whether you can afford to meet the repayments if interest rates rise.
Do put down a deposit if you can. If you’ve got a deposit, you’ll not only get a better mortgage rate, your monthly repayments will be lower and you won’t have to pay Mortgage Indemnity Guarantee.
Don’t get a mortgage with extended redemption penalties. Paying a penalty for switching mortgages before an offer comes to an end is fair enough. But don’t accept a mortgage with penalties that extend beyond this period.
Do shop around for buildings insurance. Some lenders charge borrowers a one-off fee if they don’t take out the buildings or contents insurance with them. It may be cheaper to pay this and buy your insurance elsewhere.