Finding the cheapest mortgage deal

January 2, 2017 by Brendan

Advice & Tips

As mortgage rates have been at their lowest levels during 2016, one of the concerns homeowners have is whether interest rates will increase during 2017. One of the ways to prepare for potential interest rate rises is to make sure you have the cheapest deal available right now. A fixed rate deal will also guarantee that you won’t pay any more for the full term of the loan.

Just paying half a percent more in interest can add up to thousands over the term of a mortgage, which is why it is important to obtain the best deal. However, some fixed rate deals have an arrangement fee which can be quite high, while others may have fees for surveys. Checking with a CeMAP qualified mortgage adviser is often the most effective option, as the cheapest rate may have higher fees.

Finding a cheap fixed rate deal is a relatively simple task, while being accepted by a lender is a lot more complex. Prior to applying for a mortgage or a new deal, make sure your credit score is at its best, while cutting back on expenditure.

Lenders will conduct affordability checks, which will even include how much you spend on entertainment. A mortgage adviser will be extremely helpful when you are deciding which deal to apply for, as they are aware of the criteria for each lender.

Planning ahead, sorting out your finances and going to see a mortgage adviser, who has taken a CeMAP course, will give you the best possible chance of securing the cheapest mortgage deal.