When you buy a house, there are a lot of things to think about from the location and size of the property to the type of mortgage you’ll need to finance the purchase. With so much to consider, it’s important to get expert advice on how to finance your house purchase. Here are some tips from the Money Advice Service on how to make sure you get the best mortgage deal and make your money go further.
- Get your finances in order:
Before you start looking for a mortgage, it’s important to get your finances in order. This means getting a clear idea of your income and outgoings, so you can work out how much you can afford to spend on a mortgage each month. It’s also worth checking your credits score, as this can have an impact on the mortgage deal you’re offered.
- Shop around for the best mortgage deal:
Once you know how much you can afford to spend on a mortgage each month, you can start shopping around for the best deal. It’s worth speaking to a few different mortgage lenders to compare the deals they’re offering. Make sure you compare things like the interest rate, any fees, and the length of the mortgage.
- Fixed-rate mortgage:
If you’re worried about interest rates going up, you may want to consider a fixed-rate mortgage. This means that the interest rate is fixed for a set period of time, usually 2-5 years. It’s worth remembering that you may have to pay a higher interest rate than you would with a variable-rate mortgage. Learn more at https://www.modernpropertysolutions.com/ check the site.
- Variable-rate mortgage:
If you’re happy to take the risk that interest rates could go up, you may want to consider a variable-rate mortgage. With this type of mortgage, the interest rate can go up or down. However, you could benefit from lower interest rates if the base rate goes down.
- Think about the fees:
When you’re comparing mortgage deals, it’s important to think about the fees as well as the interest rate. Some mortgage deals have low-interest rates but high fees, so you need to make sure you compare the overall cost of the deal.
- Get advice:
If you’re not sure which mortgage is right for you, it’s a good idea to get advice from an independent financial adviser. They can help you compare different deals and make sure you get the best deal for your circumstances.