As you search for best buy mortgage deals, the following tips could be helpful:
- Assess how much you could afford to pay on a mortgage each month
- Pay as large a deposit as possible
- Use a mortgage calculator to work out how much each mortgage would cost
- Consider long-term costs of a mortgage; introductory offers may be attractive, but consider whether or not the mortgage would be good value after these run out
- If you are unsure of which mortgage could be best for you, you may like to speak to an independent financial adviser (IFA)
There are many different types of mortgages that could be available to you, so it is important that you consider not only the type of repayment plan you think you would be best suited to, but also the kind if interest rate deal as well.
With regard to how your regular repayments will be structured, you have two options. A ‘repayment’ mortgage deal will involve you paying monthly repayments of interest plus capital until the loan is cleared. An ‘Interest only’ mortgage deal on the other hand would require you to pay monthly interest repayments, whilst paying into a long-term savings plan which will is intended to pay off your mortgage upon maturity.
What constitutes your mortgage best buy will also depend on what kind of interest rate deal you agree to. Two of the most prominent types:
A fixed rate mortgage would come with a guaranteed interest rate for a set period before reverting to the lender’s standard variable rate (SVR).
Tracker interest rates follow the Bank of England base interest rate, and could move up or down depending on changes in the market.
The product comparison table above contains a range of competitive mortgage deals that may turn out to be ideal for you.