Mortgages

When you want to know how to find the best mortgage, you need to do a little research on the subject.

There are several types of mortgages you can obtain:

• Discount mortgages - discounted payments that revert to a variable rate later.
• Flexible mortgages - freedom to pay more or less, borrow against, take payment holiday.
• Fixed rate mortgages - same payment for a period of time, then the rate goes to standard variable rates.
• Base rate tracker mortgages - fixed rate added to variable Bank of England's Base Rate. Payment can vary accordingly.

The current economic climate is affecting the home mortgage market and property sales tremendously.  Approvals were down 52% in October 2008, and housing prices are down 15% from last year. 

The UK is experiencing weak consumer spending, increased unemployment, and a reluctance by consumers to buy. As a result of the global slowdown, mortgage companies are requiring larger deposits and charging higher interest rates. The best rates are only available for persons with good credit records and 40% down payments.

For those wanting to know how to find the best mortgage, advisors recommend fixing bad credit records, saving up the largest down payment possible, and bring solid information about your finances.

You will provide salary and employment history, credit history, and you will need extra cash for fees and home improvements. Be sure to ask about fees and commissions, and if there are penalties or fees for early loan repayment or pre-payments.

If you're looking for a new mortgage, economising a little bit on your mortgage is something you can do right now, in the face of the current situation in the country.  Speak with an advisor to find out more.

None of the information on this website is intended to promote any specific mortgage product or provide mortgage advice.
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