With Christmas just around the corner, most home buyers will be waiting until 2018 before starting the mortgage process. But will there still be cheap mortgage deals around? Here are our top tips to try and secure the best deal for your mortgage next year.
Start your mortgage search by using a comparison site. You’ll be able to see a good range of the deals that are available both on the high street and those offered by intermediaries. Whilst a mortgage with a low interest rate may look tempting, don’t forget to look at other associated costs such as the application or administration fee. Hefty fees that are added onto your mortgage could end up costing you more in the long term, than choosing a mortgage with a slightly higher rate and no fees.
Use a mortgage adviser
A qualified mortgage broker can make life simpler when looking for a cheap mortgage deal. Get them to match your circumstances to a leading deal – sometimes they have access to exclusive offers that aren’t available on the high street. Just make sure that they are a whole-of-market broker, rather than working with a limited panel of lenders.
Fix your deal
We’ve just seen a rise in the interest rate but this could increase even further in 2018. If you are looking for affordability and stability with your payments, considering fixing your mortgage deal while you can. A decent, long term fix could protect you from future rate rises.
Check your credit score
Your credit score could be the difference between you getting a good mortgage deal and a great mortgage deal. Make sure that you are paying current credit card debt off regularly and on time and avoid making any new credit applications – that will leave a footprint on your file – in the months leading up to your mortgage application.
Cut your spending
Before offering you a mortgage, lenders will do an affordability test to make sure you have the means of repaying your mortgage each month. Rein in your spending before you apply for your mortgage to give you a better disposable income. If a lender can see your finances are in good shape, they might consider you for a better deal.
Up your saving
This is often the hardest bit for those looking to secure a mortgage – saving for a decent deposit. However the more you can offer up-front, the more likely you are to get a lower mortgage rate as your loan to value will be reduced. Even just a few hundred pounds more could drop you down a bracket – it might not seem like a lot but the lower interest rate could make you significant savings in the long term.
SoSmart Money are specialists when it comes to mortgages and insurance. We can put you in touch with a trained expert, who has access to the UK’s leading lenders and using their knowledge and skills will place you with the most suitable lender and product for your needs.
The above post is intended to be informative but does not constitute advice – financial, legal or otherwise. Any opinions given are the author’s own and do not necessarily reflect the views of SO Media.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.