Choosing the Right Mortgage Lender: What to Consider

Choosing the Right Mortgage Lender

Once you’ve found the property you’ve probably spent a long time searching for, unless you’re buying upfront, you then face the task of finding a mortgage lender. This isn’t always straightforward as there’s lots to consider, however with this useful article you can make life a little easier for yourself. We’ve detailed what to prepare for and what to look for in a lender, to help you make the right decisions.

house money, Choosing the Right Mortgage Lender

What can you afford?

To start with the basics, you should fully breakdown your monthly expenditure to work out how much you, or you and the person(s) you’re buying with can afford to pay. Look at everything from food bills, to social spending and future planning (having children) so you know how much you can realistically afford to pay a month.

How long do you want the payment plan?

Before you go into any lenders to ask about mortgages you should also have a good idea of what you want your payment plan to look like and how many years.

What deals are on offer?

Look online or on the highstreets at what deals different providers are offering. This might be whether there are any fixed-rate deals on interest, cashback or loyalty bonuses.

Will you face any potential penalties?

With the above, you should also look at whether or not they have any penalties or additional charges on aspects like late payments, changing providers or paying off lump sums.

What’s available for first-time buyers?

If you’re a first-time buyer you might also want to see if there are any mortgages available for those in your situation. More often than not lenders will want to help you get onto the property ladder and will have special offers in place, specifically for first-time buyers.

Are there any other charges?

It’s highly likely there will be application and service fees, which can add up if you’re not expecting them. So remember to ask about these as well when you’re shopping around.

Do you have all the information you need?

Once you’ve considered all of the above you should be able to find a lender that has a mortgage that ticks all your boxes. When you arrange a meeting though, ask them exactly what you need to bring with you, as any missing documentation can hold up the process or stop you being approved.

A final piece of advice is to remember to double-check everything on your mortgage agreement before you go forward. It’s important to be completely sure as this is something you’ll be agreeing to pay for a while, so it pays for you and whoever else you’re signing with to be 100% sure.




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