Purchasing a property is likely to be one of the most significant purchases of your life – and the right mortgage or re-mortgage deal you choose can save you hundreds of pounds each month.
Knowing how to get the best deal on your mortgage is essential, especially with this cost-of-living crisis; every penny saved can make a world of difference to your finances.
Finding the best deal on your mortgage can be challenging, but we’ve compiled several tips for finding the best mortgage for you, where to find them, and how you can improve your chances of getting an excellent deal.
When you’re looking at applying for a mortgage, your bank is often your first point of call. Many banks will offer discounts if you bank with them already, yet you might not be getting the best deal. Buying a house is already an expensive venture, so you owe it to yourself to shop for the best deal possible.
You can do this by enlisting the services of an independent financial advisor or using an online mortgage comparison website like Quotezone.co.uk, which allows you to carry out a mortgage comparison on mortgage deals from various providers and choose the right mortgage provider for you. Consider looking at their website for more information and see how their helpful tool could help you get the best deal on your mortgage.
Watch Your Credit Score
When it comes to getting the best deal on your mortgage, your credit score and report are essential aspects as your chosen lender will use this information to determine how high-risk of a lender you will be.
Typically, it would be best if you aimed to have a credit score between 881-960, as this is considered good by most banks; anything lower can make lenders think you’ll default on your mortgage repayments. However, don’t worry if your credit score isn’t perfect, as there are plenty of ways to improve it, like checking your report regularly for mistakes or registering to vote.
In the months leading up to your application, you should also avoid any behaviours that could cause damage to your credit score, like regularly missing credit card repayments or applying for a large amount of credit in a short time.
Aim To Put Down A Big Deposit
Another way you can get a better deal on your mortgage is by aiming to put down as much of a deposit as possible. In short, the more money you put down, the less you must borrow, and the more you’ll look less like a high-risk lender. If you manage this, you’ll probably get a lower interest rate.
Most lenders ask for a 20% deposit, and those who manage this usually get the best deals. Yet if this isn’t feasible, you can get a good deal by putting down a lesser amount or by applying for government help to buy scheme, but not too low; otherwise, the interest rates will start increasing.
If you’re in the midst of getting a mortgage, you might also want to take a look at my post on what you really need to know about mortgage advisers.