Getting the right mortgage or remortgage deal can save you £100s each month. With mortgage interest rates rising at the moment, in many cases rapidly, finding the best deal can be a headache – but it’s more important than ever.
Our step-by-step guide outlines how to find the best mortgage for you, where to look for a good mortgage broker and other key information.
How To Find Your Top Mortgage Deal
If you’re familiar with mortgages and just want to locate a good price, skip ahead to the fast links in this one-minute read.
Alternatively, you may read our whole guide for additional information.
Meanwhile, if you need to brush up on mortgage essentials, such as what a loan-to-value is or how credit scoring works, call London Mortgage Advice Ltd at +44 20 8802 9030 for fee-free advice.
Benchmark your top deal in two minutes
Finding the best mortgage deal can be a daunting task. Not only do you have to compare rates, but you also need to consider things like interest and down payments.
The mortgage planning team at London Mortgage Advice Ltd understands this struggle and has created plans that will help you find your top deal in two minutes or less!
Use a broker to seek out the best deals you’ll be accepted for, including exclusives
In the current real estate market, getting a mortgage is tough and even tougher to find one that suits your needs. That’s why we recommend using a broker to help you through the process.
A mortgage broker can search for mortgages from banks and lenders across the UK and find the best deals you’ll be accepted for, including exclusives.
Do a 10-min search for mortgage deals online
To find the best mortgage deals online, you need to do a 10-min search. You can start by searching for the best brokers in your area.
Once you have narrowed down your search, you can compare the offers and choose the one that suits your needs.
Two Crucial Questions to Ask Mortgage Brokers…
Can you get me a mortgage from any UK lender right now?
This determines whether your broker can obtain you a UK mortgage. Not all can, therefore it’s critical to understand which you’re working with.
Here are some possible responses:
- ‘No.’ Some brokers are committed to a single lender or work with a narrow panel of lenders, so they look for fewer opportunities. This makes it easier and less expensive for them to operate.
- ‘We examine all items made accessible to brokers.’ The essential term to remember here is “accessible to brokers.” This was previously known as the ‘whole of the market.’ Because they will not get a commission, many brokers will eliminate lenders and goods only available directly to the public. Furthermore, they may be unable to apply on your behalf.
- ‘We investigate all lenders.’ Some brokers also look at lenders’ direct-only offerings. They are, however, more likely to levy a fee. In truth, a broker is unlikely to give you access to EVERY mortgage because exclusive agreements can be struck between lenders and brokers (and clubs that brokers can join).
Just be sure you understand what your broker is selling.
Consider if you need to double-check every contract, whether you’re prepared to do part of the labor yourself, and whether you’re willing to pay a broker fee.
Once you’ve chosen a broker you like, you should ask them the following questions to determine if they’re the ideal broker for you.
Do you charge a fee?
This explains how the broker profits from your mortgage transaction. Brokers can earn money from two different sources:
- Commission. Most lenders pay brokers a 0.35% ‘procurement charge’ (£350 every £100,000 transaction). This is a fee depending on the size of your loan and has no bearing on the cost of your mortgage. Before you apply, they must inform you of the exact amount they will be paid before you apply. This information may be found beside the ‘Key Facts Illustration,’ which they must supply before you apply.
- Fees. Brokers may also charge a fee straight to you. This might be in addition to or instead of the commission (in other words, they charge a fee and refund you the commission). If they provide you the option of paying a fee or receiving a commission, they can call themselves ‘independent.’ They can’t, which is a little perplexing if they don’t.
No reputable broker should charge more than 1% of the mortgage value, even for customers with poor credit ratings.
Walk away if yours charges more. Fees can be imposed at any point if you know them from the start.
However, beware of any broker that charges you large fees before completion. You will very certainly have to pay even if the acquisition falls through.
As this is a London Mortgage Advice Ltd site, we’ve always said our preference is not to pay a fee if you don’t have to.
For this, you’re looking for a fee-free broker (in other words, one that makes their money through commission) who can advise on the widest range of mortgages possible.