Find and compare the best mortgage deals
Let’s be honest on one thing; finding the perfect mortgage is an uphill task. And the recent battles between lenders as they try to outdo each other by lowering interest rates do not make things any easier. One of the worst financial decisions you can ever make is to rush into a mortgage agreement. You need to take your time and get what works best for you.
Before You Start The Search…
Mortgage deals are now more than a simple flood; they are a freaking tornado! Before you start the search for the deal that best suits you, you need to know exactly what you are looking for. Otherwise, you might get lost in it all and end up with immeasurable debts and even repossession.
Keep in mind that getting a mortgage, regardless of how sweet the deal is, translates to a monthly deduction for the period you’ll choose. Therefore, keep an eye out for deals that will work out with your current financial situation. Now, in order to know if the deal will be good for your pocket, you need to know how much it’ll cost you. Since the cost depends on a variety of factors, here are a few things you need to keep in mind.
The Type of Mortgage
There are 2 types: fixed and variable rate mortgages. While most lenders sweeten fixed rate deals and package them in an irresistible way, you’ll need to know what to look for in the fine print.
Fixed Rate Mortgages
The interest rates in these loans stay the same throughout the loan period
Variable Rate Mortgages
The interest rates in these deals fluctuate depending on current market conditions
The Mortgage Period
How long should your ideal mortgage be? Well, for starters, you should try to repay you mortgage within the shortest time possible. The longer you keep the lenders money, the more the interest you pay. However, short period mortgages usually require higher monthly contributions. The trick is to get a deal that will not strain you financially and takes the shortest time possible to repay.
You can also choose a mortgage whereby you can easily repay in lump sum should the lucky stars shine on you. However, this condition should be clearly stipulated in the initial agreement. Ensure that you will not be charged any penalties for early repayment.
What about the Loan to Value Ratio?
The amount of equity/deposit you put down can easily sweeten the deal for you. This is how the lenders reason: the more risk involved in the lending, the higher the interest rate. If you borrow a mortgage that is lower than the property value, you get a better rate. If the mortgage is higher than the home value, it shows that the more is at risk, so they charge higher interest rates.
Did you know that there is a mortgage you can take that allows you to pay whatever amount you have at any time? You can transfer to another property, underpay, take repayment breaks, overpay, or even borrow back the money without attracting penalties! Well, you guessed right; you will pay for the flexibility.
Now, the Real 2015 Mortgage Deals
2015 is a year that has witnessed the lowest mortgage interest rates since 2009; with 10 yr fixed rates going below 3%, 5 yr fixed rate mortgages are less than 2%. The property market started on a low note this year, but economists predict a steady recovery. Fixed rate mortgages are better deals compared to variable rate options, especially at this time when the rates are at their all-time low. Let’s look at the hottest deals as of now.
It is important that you sample several sites for information on the current rates as they may change. However, the rates will not change significantly. Check with different lenders and find out if you can get your prefferences such as flexible payments. With some research and expert advice, you are sure to get the best deal. There are numerous sites that have mortgage calculators. You can make use of these sites to calculate the best deal!