If you are looking for a mortgage then you will find that you will have a lot of choice. There are a lot of places that offer mortgages and this means that although there is competition and choice, which is good, it can make it difficult to choose which mortgage to go with and perhaps even confusing or daunting. Therefore, it is a good idea to think about how to choose between them so that you know that you have the very best mortgage for you.
Consider what you Need
It is worth starting with thinking about what you need from the mortgage. You will need to think about what you are personally looking for. Of course, you will want to pay as little as possible for the mortgage if you can. You will probably want the shortest term as well, although you will also need to make sure that you have manageable repayments. It can be wise to calculate how much you think that you will be able to afford to repay each month as this will help you. Also, consider whether you will be able to afford to pay more than this. This is because mortgage rates may vary, with certain types of accounts and so you may need to be sure that you can still afford them.
Consider Using a Financial Advisor
Some people find it really useful to use a financial advisor to help them when they are choosing a mortgage. They will be able to explain the differences between the mortgage types, identify what will be best for you and then find you the best provider. This can save you a lot of work, but you will have to pay them to do this. This could be worthwhile if it means that you will be able to get a better rate and save money and also find a mortgage that is manageable for you which means that you will avoid having to pay any late repayment charges.
Look at the Main Differences – Repayment & Interest Only, Fixed & Variable Rate
It is worth finding out a bit more about the main differences between the main types of mortgages to help whittle it down. For example, you will find that you can pick repayment or interest only. A repayment mortgage will allow you to be able to repay some of your mortgage each month and an interest only will allow you to just repay the interest each month and invest money elsewhere. It is worth thinking about which of these methods you feel will suit you the best. It is also worth thinking about whether you are keen to have a fixed rate of interest so that you will always know how much you have to repay, but which might mean that you are tied in with a lender for a certain period of time or whether you are happy with a variable rate which could go up, but also down.
Look at Smaller Differences
It is also a good idea to think about any smaller differences that you need to consider. Things like the interest rate, fees and charges will be important to everyone. However, you also need to think about the lender and what they are like, how good their customer service is, what their reputation is like etc. These smaller things will help you to more easily choose between the different lenders, once you have decided on what type of mortgage you want. They can be very important though and will determine whether you get good value for money and whether you have a good borrowing experience.