Compare Mortgage Rates
There are two main reasons why banks and other lenders are asking for higher mortgage deposits:
There is a considerable risk of a considerable of people slipping into negative equity ( a situation where the value of the outstanding mortgage debt is more than the value of the property in question) which presents substantial risk to lenders
Banks are becoming increasingly aware that they need to be careful and selective of who they lend to
Compare your Options
You are likely to save more money in the long run with a larger mortgage deposit, as the amount of interest you have to pay will be reduced as well as the overall size of your mortgage and the time you spend repaying your mortgage loan. It is important to make a thorough market comparison before committing to a mortgage deal. You should not apply for more than one mortgage at any time because this may have serious repercussions on your credit rating.
Existing Financial Provider
It is advisable that you should shop around to find the right mortgage lender and you may wish to consider your current financial provider as a viable lender, because they may allow you to place a smaller deposit on a property by using your savings or they may offer special deals for existing customers.
The two most popular interest rate deals are:
- Tracker – this type of interest rate may fluctuate according to the Bank of England base rate and because of this, you may find it difficult to manage your own finances
- Fixed rate – this type of interest rate remains fixed either above, below or in line with the Bank of England base rate for a set term, allowing you to plan your finances because it is predictable and consistent.
You may wish to take a look at our comparison tables, which have been specifically designed to help you find which type of mortgage deal and which method of repayment is best for you.
With hundreds of deals to choose from it pays to get advice from an expert. Based on your requirements our mortgage broker service provides:
- Fast professional advice
- Mortgage Quotes from leading UK lenders
- Advice if you have a less than perfect credit history
- Advice for the self employed and those with irregular income