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6 Steps to Get the Best Mortgage Deals

low mortgage ratesEveryone who has an existing mortgage must consider how much they money they can save. To understand how much you can save, you need to know a few details:

Benchmark the Cheapest Possible Mortgage

Benchmark the cheapest possible mortgage that is available to you in your circumstances. There are some comparison websites that o this. But, you have to make sure that you use only those comparison sites that include direct-only deals and not just the deals available to mortgage brokers.

Do Not Forget the Fees

Mortgage fees can be huge these days, up to thousands of pounds. Factors in the cost over your deal term, for example, you are getting a two year fixed mortgage, and maybe your fees are 2,400 pounds. So, it makes 100 pounds a month. If you factored that way, then you get the true cost of the fees. That is what lenders do effectively. They reduce the interest rate but increase the profit far more into the fees.

Remember the Affordability Checks

As it sounds, it will be looked out when you can afford the mortgage that you are looking to get. They may look at all the bank statements that how much revenue you got. So, before you remortgage, that could be a problem that you may face.

Remortgaging means that you are not moving from your home, you are not borrowing money anymore and not getting new debts.

The Affordability Checks Apply For Remortgaging Too

The only lenders who do not have to look at the affordability when you are remortgaging are your current lenders. Obviously, they have their interest in it so why should they make it cheaper for you.

Check Your Credit Scores

Your creditworthiness these days has the biggest impact on whether you will be accepted for a remortgage or not. Therefore, trying remortgage for bad credits can create even more problems for you.

Never Miss a Repayment on Anything

Understand that every application that goes into your file may be just a credit card or even your electricity or mobile phone, must not be applied for to keep your report clean. There are a lot of other tricks, such as:

  • Put a landline not your mobile phone.

  • Keep your details consistent, that is, make sure you are consistent about whatever phone number you put down, the job you are doing, etc. Choose one statement and stick to it because inconsistency can trigger negative scoring and can knock you out.

Should You Go For A Fixed Or Tracker Mortgage?

Fixed means that your rate will not move, therefore, you have the security of what you will pay, and you can make a budget for that until that set length of time. The closer you are to your affordability brink for being able to pay your mortgage, the more you should go for a fixed rate for a longer time. You have to focus primarily on your current circumstances.

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