call-to-action call-to-action-mobile

How to get the best deal on your mortgage

Tue 21 May 2019

 mortgage

It’s practically step one on every homebuyer’s to-do list; get your mortgage approval so you know what your budget is for your property search. However, don’t just stick with your own bank or jump at the first mortgage which is offered to you; follow our tips to help you to get the best deal on your mortgage.

 

Deposit

 

Often the biggest hurdle to buying is the deposit itself, but spending more here should save you money in the long-run; the general rule is that a larger deposit will result in a more favourable rate as well as having a favourable impact on credit scores with lenders. With mortgages categorised according to their loan-to-value (LTV) – the percentage of the mortgage as a value of the property – the more equity you have, the lower risk you are to the bank.

Shop Around

It may seem like the easiest option is to simply take out a mortgage with the same bank that you conduct your personal accounts with; however, this will restrict your view on the mortgage market to a single lender. Looking around independently will help you to learn about the mortgage jargon and understand exactly what kind of proposition will suit you best. Comparison services will do a lot of the legwork for you, but remember that some of these require services charge, so if you can, find a no-fee broker.

Avoid bumps in the road

Having your documents in order seems like common sense, but a sure-fire way to having your application declined is to have inconsistencies in your paperwork. If you have recently married or changed address, for example, ensure that your documents reflect the correct details. Whilst you’re updating and verifying your documents, it’s certainly worth registering for the electoral roll as this has a huge bearing on the scoring system for lenders.

 

Fixed rate or tracker?

Put simply, a fixed rate mortgage locks in an interest rate for a specified time period, whereas a tracker mortgage has a variable interest rate which follows, or “tracks”, an external interest rate – frequently the Bank of England’s base rate. Deciding on which mortgage variant to take out depends on your financial situation; if you can afford to potentially pay higher mortgage amounts should the rates rise, then taking out a tracker mortgage could give you a lower starting rate to begin with. Alongside this, it also allows the opportunity that over the duration of the mortgage, you end up paying cheaper than if you had a fixed rate. If you need to know exactly how much you will be paying each month, then a fixed mortgage could be the best choice to avoid any unwelcome surprises – even if the initial rate is higher than other offerings.

Credit score

Having a great credit score is a huge help when it comes to getting an attractive mortgage rate, as lenders are keen to lend to those with a good history. Also, if you have a smaller deposit then it is essential to have an impeccable credit score, whereas having a larger deposit will result in more leniency if you have a lesser credit score (although you may struggle to achieve “high street” rates). If you want to cultivate the best credit score possible then there are a few steps you can take immediately; ensuring any outstanding debts on credit cards etc. are paid in full each month to show a strong payment history and clearing any outstanding debt are a good place to start.  

 

"Dear Josephine and all at ehB. Just a quick note to thank you for all your help and support. It has been invaluable during a very stressful time, and I cannot begin to explain how your thoughts, advice and courage has got us through. We are thrilled to begin our lives in our new home."
Angharad and Christopher

News Archive

May 2024

Now Is The Time To List Your Rural Property For Sale!

March 2024

Selling And Buying A House With ehB - A 2024 Market Update

February 2024

Making Your Move - Why Some People Choose To Move House

January 2024

Moving House in 2024 - Your Next Chapter with ehB

December 2023

Navigating The Current Housing Market

November 2023

Thinking of Selling in 2024

October 2023

Thinking Of Moving To One Of The Best Places To Live In The Midlands?

September 2023

Why ehB Should Be Your Top Choice For A Leamington Estate Agent

August 2023

Now Is The Time To List Property!

July 2023

Hoping To Be Moving House Before Christmas?

June 2023

Town Centre Living Is Back!

May 2023

Is It A Good Time To Sell A House?

April 2023

When Is The Best Time To Sell A House?

March 2023

Why Is Demand For Property So High In Leamington Spa?

February 2023

The Property Market Is Stabilising

November 2022

Two long-established names in Warwick estate agency join forces as ehB buys Donald Carter

October 2022

What’s Going On With The Housing Market?

Low unemployment bolsters market

August 2022

What's Happening with the market in August

June 2022

Houses for sale in Leamington are being snapped up.

April 2022

How to Get the Very Best Price for Your Property

March 2022

Spring housing market shows no sign of cooling, as ehB Residential reports continuing buyer demand

January 2022

Homebuyers likely to ‘go for it’ in the New Year, says ehB Residential

December 2021

ehB Residential calls on sellers to capitalise on Boxing Day Rightmove boom

November 2021

Hesitant home sellers urged to take advantage of less competition as Christmas distracts fellow vendors