Consider using a mortgage broker. Although he will require you to pay a fee for his services, it's better to let someone with experience handle the process of looking up the best deal for you.



Before choosing a mortgage, it is very important to decide which one is right for you. Finding the right mortgage means balancing your finance options with your housing requirements and financial picture, now and in the future. Also the right mortgage is not just having the lowest interest rate.

This will be determined by your personal financial situation. What is your current income, savings, cash reserves and debt-to-cash ratio? How will your finances change over the coming years? Have will you pay off the mortgage before your retirement? How long you intend to hold on to the property? How would you handle changing financial payments?

Your debt-to-income ratio is another determining factor. Debt-to-income is actually often overlooked. If you have too many payments to make; cars, house, or credit card, pay some of it off.

You then decide mortgage term length (how may years you want to be paying it), and the type of interest rate (fixed or variable/adjustable).

Total costs of getting a mortgage could be as much as 3 or 4 percent of the purchase price. In some cases the costs are based on a fixed scale; in others they are variable. These fees can include a valuation fee, Mortgage Indemnity Guarantee (MIG) premium, arrangement fees and booking fees.

All financial product enquiries should place you under no obligation to proceed. Lenders should charge no upfront fees at all, at least until they get to the stage of valuing your property. Then they will have to charge you a valuation fee. That would be to cover their expenses, and to discourage timewasters.

Mortgages can be complicated. The choices can be confusing. If you're not sure about how to proceed some professional advice would be worthwhile. You might save thousands of pounds. Be especially wary of exotic-sounding or 'easy payment' deals; you need to understand what you're buying, and the lender is in business to make a profit, not to offer charity to frantic would-be homeowners.

Make realistic comparisons between different products. Your goal is to work with a lending company which offers the lowest interest rate and fees, and which has a reasonable back-office service. If the financial details are too confusing for you, then ask for help from those around you. There are always people who are willing to share their knowledge with you.

Look out for any hidden or obscured costs. You will find that some financiers charge a range, under different names. Make sure that you know all what you will be charged for, whether it is in the form of a fee upfront or whether it is added to the mortgage later.

One way of affording a good mortgage is to increase your income. You could get a higher-paying job or even a part-time job. You could even work from home by selling at eBay or selling other people products (affiliate products). Confirm that your finances are sound and that you do not have a bad credit history.

Obtain multiple offers before you settle on the best one. There are a large number of lending agents to choose from, so you should obtain multiple offers and quotes. Compare the fee structure, the mortgage amount and the rate.

Get a "Good Faith Estimate" from both a broker and a direct lender, for comparison, NOT two brokers. With brokers "the biggest fibber gets the commission." AVOID pre-payment penalties.

Watch out for "bait and switch" tactics. For example, as the closing date gets closer the lending agent may change the rate or other condition, for any excuse. He'll try to put you in a corner, calculating you're unable to do anything about it.

Most lending agents are trying to milk as much cash as they can from you. Be wary.