I've been writing about the mortgage market for nearly a decade, and over that time I've come across a series of common pitfalls and misconceptions that result in borrowers making the wrong decisions and paying over the odds.
Read on to find out my five top tips for getting a mortgage.
1. I'd never leave it until the last minute to remortgage
If your fixed term is coming to an end, you can start shopping around for a new deal six months before your current one is due to expire.
If you use a mortgage broker to find a new deal, they can lock a rate in for you and continue to monitor the market.
If rates rise, you'll already have your cheaper deal in the bag. And if they fall, you can ask your broker to switch you on to a different deal.
2. I'd never worry about longer mortgage terms
Terms of between 30 and 35 years are becoming increasingly common, but this isn't something you should worry too much about.
A longer term will mean your monthly repayment will be lower, but you will of course pay more interest overall.
As time passes you can knock your term down. You'll build equity in your property and it may rise in value over time, allowing you to shave years off when remortgaging.
If you're able to, you can also make overpayments as you go, to chip away at your balance.
3. I'd never ignore upfront fees
The vast majority of mortgage deals come with a fee, at an average of around £1,000. These fees have various names, including application fees, booking fees and product fees, but they're all essentially the same thing.
It's worth doing the sums on fee-free deals with higher initial rates, as they can be cheaper overall. For example, a mortgage with an initial rate of 4% with a £999 fee could end up costing you more than a deal with a rate of 4.1% but no upfront fee.
4. I'd never compare deals myself
There are currently around 5,000 mortgages on the market, meaning it can be tricky to compare deals and find the right one for your circumstances.
Consider taking advice from a mortgage broker. A good broker will be able to assess the vast majority of mortgages and find the most suitable deal for you.
They can also take care of the application process from start to finish.
Find out more:5. I'd never go with my current bank because it's the easy option
A recent Which? survey found the most common reason for choosing a mortgage lender is having an existing relationship with it - for example, holding a current account.
Sticking with your current bank might sound like the easiest option, but it's highly unlikely to be the cheapest.
source https://www.which.co.uk/news/article/5-things-id-never-do-as-a-mortgage-expert-aArQx8K6zKkw