In this day and age, it can be difficult to apply for a mortgage and if you are new to the process it can be even more daunting.
This article takes a look at the steps you need to take to ensure you get the best mortgage in the UK. From using loan comparison websites to employing the services of an experienced mortgage broker, this is the way to go!
Find the right repayment terms & interest rates
When you are looking for a home loan it’s important compare many lenders in order to find the best rates as well as the most suitable mortgage conditions. Looking at the repayment terms and interest rates is only part of the comparison process.
Home loans are a long term loan and you will be paying it off for most of your adult life. Therefore, it is important to get a home loan with lower interest rates and favorable terms to suit both your short-term and long term financial needs and goals.
Another important factor will be choosing a fixed or a flexible interest rate. With a fixed interest rate, you are certain that your interest rate will not change during the repayment period but these are generally more expensive than flexible interest rates which fluctuate based on the market.
Resources to help you find the right loan option
Loan comparison sites deliver value
When you shop around for a home loan, you can conveniently apply on a loan comparison site. The benefit of using a loan comparison site is the fact that they only do one credit check and you will be able to view the rates and offers from a wide range of providers.
Applying for a loan without using a loan comparison site will result in multiple credit checks that can have a negative affect on your credit score. These convenient tools are freely available to you to help you make the best possible financial choices.
Making use of a mortgage broker
Mortgage brokers do not charge customers for their services and are an invaluable asset when it comes to purchasing a property and applying for finance.
Not only will they be able to put a loan application together on your behalf but, since they know the market and are aware of the policies, procedures and pros and cons of the various mortgage offers available, they are able to negotiate the best terms and lowest rates on your behalf.
Mortgage brokers will also be able to negotiate with the banks and lenders by pitting offers against one another or simply discussing your options with you and advising you on which is the most suitable for your needs.
Another important benefit a mortgage broker offers is that they will enable you to access a variety of options and lenders. With only one application you will be offered quotes from all major banks and home loan service providers.
Once you receive these offers, you broker will be able to go through them and advise you on which offer or offers are the most competitive and beneficial to you.
Tips to get the best home loan
- Use the online loan calculator on a lenders website to compare loan costs before you apply for a loan.
- Apply for pre-approval prior to going out and shopping for a property.
- At the very least, try to put up a 20% deposit to reduce you overall loan cost and improve your chances of approval.
- Ensure you are credit ready and consider applying for pre-approval before going house hunting.
- Use the information that is available to you to make an informed choice and make use of expert advice even if you feel that you don’t need it.
- Check reviews on the lender’s website before making any decisions. All these tips and tricks can help you secure the best possible mortgage.
- As this will probably be your biggest expense in your lifetime, you want to ensure you get it right the first time! You can make use of the services of a broker to ensure you do.
- Strike a perfect balance between lower monthly installments and a longer loan term. Remember that the longer the loan term the more you will pay overall for your home loan.
Applying for a home loan is easy
Applying for a loan online is easy and convenient; simply visit the website of the lender you want to use and fill in the quick online loan application form. Most lenders will get back to you right away with a range of options and requirements for finance. If you feel overwhelmed, always opt to employ the services of a home loan broker.
Many lenders have a client support service that you can use if you have any questions or need help. Make use of this service if you are unsure of anything and always ask the bank representative or home loan originator all of the questions you need to.
Get a bad credit home loan
Many lenders do not discriminate against clients when they have a bad credit history as long as they can prove affordability. You can still apply for a home loan. A loan comparison site will be the easiest way for you to find a bad credit home loan.
The quotes are obligation-free and it gives you the freedom to choose the best deal. Peer-to-peer lending and credit unions are also very helpful when you are looking for a loan when you have bad credit but these lenders do not offer home loans. If you have been declined for a home loan you can apply to have your home loan co-signed by a guarantor.
Apply online for a home loan
Found your dream house? A quick and convenient online home loan can make your dreams a reality. Applying for a home loan only takes a few minutes and you will know if you qualify quickly.
Get the process started and apply online today! If you want to make use of your regular bank, chances are you will get a response even quicker since your bank will already have a profile on you and will be able to determine affordability within minutes.