If you glaze over when the conversation turns to things like mortgages and finance, you’re not alone. Even those who work in the industry can find the chatter tiresome at the end of a long day. But if you want to get a great deal on your mortgage, it pays to get clued up.
We pride ourselves on offering straight-talking advice on the mortgage market. We don’t want to dazzle you with too much information, we just want to make sure you understand what is important to you. To that end, we’re going to share some interesting facts with you. These are things that not many people know, but it could save them time and money when it comes to securing a mortgage.
The common misconception is that poor credit history is bad for a mortgage application and that no credit history is good. The reverse is actually the case. Poor credit won’t necessarily lead lenders to reject your application, but no credit history could.
This is because lenders want to see that you have been able to secure and pay back credit in the past. A few hiccups along the way won’t phase them, provided you have a strong deposit and steady income. But no credit history is likely to raise some eyebrows.
Running your own business is tough enough, but when you learn that this can also make it harder to secure a mortgage it might make you wonder if it’s worth it. While it’s true that the self employed have it tougher, it’s not impossible to get a mortgage like some people would have you believe. You just need to make sure you’re speaking to the right people. There are some lenders who will be more than willing to offer mortgages for self employed with 1 years accounts.
Many people think that their pre-existing relationship with their own bank will lead to a great deal on their mortgage. Sadly, this isn’t the case. And even the lowest rates don’t always equal the best deal. It’s important to think about the lifetime value of your mortgage and consider all of the fees and bonuses available to you. Put simply, don’t assume the first offer you get will be the best.
People shy away from working with a broker because they assume it’s just another middleman lining up to take their cut. This couldn't be further than the truth. While the broker will charge a commission, they are some of the hardest working people in the mortgage business. Since their income usually relies on matching people with lenders, they always go above and beyond to help you find the best deal. And the best part is that they are experts in all things mortgages, so you don’t have to learn it all yourself.
When mortgage rates hit the news, it’s usually because of a huge change which has wide-reaching ramifications. What people don’t know is that mortgage rates are actually quite volatile and therefore changing all the time. If you have the option to wait, it’s always worth sticking around to see if rates fall again.
When you finally have your home and your mortgage, your mortgage repayments should really be seen as a minimum monthly payment. Paying extra into your mortgage at the beginning can shave years off the term of your loan. If you get a bonus at work or receive an inheritance, it’s worth putting some aside for your mortgage as it could save you a lot of money in the long term.