How to secure an affordable mortgage

May 6, 2016 by Brendan O'Neill

Advice & Tips

With so many mortgage products on the property market, finding the most suitable mortgage for your circumstances can be a complex process. If you choose the wrong product, you could end up paying thousands of pounds more for your home. However, it is possible to find a mortgage which is affordable and will save you money over the term of the product.

Initially, the best advice is to seek help from a mortgage adviser who has taken a CeMAP course. They have knowledge of the various lenders and their products, along with lending criteria and other information.

Before searching for a mortgage, decide which type you want as this will affect the choices available to you. Once you know whether you want a fixed rate, discount, tracker or standard rate, you need to know how much you can afford to pay as a deposit. The more you can pay as a deposit, the more likely it is that you will have access to cheaper products.

Affordability is another area which comes under close scrutiny by lenders, so preparation beforehand is vital. Pay off as many debts as you can before applying for a mortgage. If you are considering applying for a promotion at work, do so now so that you can borrow slightly more. However, it is crucial to be honest about your finances, as you may end up facing repossession if you can’t maintain mortgage repayments.

Check your credit file to make sure the information is accurate. Apply to have any incorrect information amended, so that you don’t fail the credit checks during your mortgage application.