Getting The Right Mortgage

Getting The Right Mortgage



Getting the​ right mortgage
Selecting a​ mortgage can be a​ difficult task .​
First of​ all,​ you​ need to​ decide which mortgage would suit your needs best .​
For those who want to​ know what their monthly outgoings are going to​ be,​ should look at​ a​ fixed rate mortgage,​ as​ these are mortgages that are set at​ a​ fixed price for a​ certain period,​ which can be anything from 1 year to​ 5 years.
A variable mortgage is​ just that,​ it’s a​ mortgage rate that changes (or varies) with the​ base rate .​
So if​ the​ base lending rate increases so does your mortgage rate,​ however the​ positive aspect of​ this type of​ mortgage is​ that if​ the​ lending rate lowers so does your mortgage repayment .​
This is​ not for all – as​ there is​ an​ element of​ risk involved (this was true back in​ the​ late 1980’s,​ when unfortunately rates rocketed as​ house prices tumbled)
You may also need to​ think about a​ repayment mortgage or​ an​ interest only mortgage.
The difference is​ that the​ latter does just that,​ it​ only pays the​ interests,​ so whilst your monthly payments will be less,​ you​ will still have the​ capital to​ settle at​ the​ end of​ the​ mortgage duration .​
However a​ repayment mortgage will be a​ little more expensive,​ but at​ least you​ will be paying off both the​ capital and the​ interest,​ which means ultimately your mortgage is​ reducing.
When you​ have agreed which type of​ mortgage suits your lifestyle then don’t be afraid to​ shop around whilst you​ are still tied to​ a​ contract – as​ there is​ usually a​ set time when you​ have the​ ability to​ negotiate another rate and/or go to​ another lender who is​ offering you​ something cheaper.
I would always suggest that in​ today’s competitive market that you​ shop around,​ as​ there are lots of​ different lenders with differing rates,​ and you​ need to​ find the​ right one to​ suit your budget and lifestyle.




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