Ten Important Questions To Ask Your Mortgage Loan Broker

Ten Important Questions To Ask Your Mortgage Loan Broker



Ten Important Questions to​ Ask Your Mortgage Loan Broker
When looking for a​ mortgage in​ today’s market you​ are swapped with information,​ products and deals .​
This can make the​ whole process very daunting and confusing .​
For this reason it​ is​ good to​ be prepared with a​ set of​ questions to​ ask your mortgage broker,​ so that you​ do not get ripped off and you​ know where you​ stand.
1 .​
What are different types of​ mortgages and in​ what way do they work?
There are a​ mass of​ different types of​ mortgage products on​ the​ market,​ so make sure that your broker explains the​ differences between the​ different types of​ mortgages and how they can benefit you​ .​
For example may lender these days offer fixed rates,​ discounts and cashback over a​ number of​ terms .​
Also make sure that you​ get an​ outline of​ the​ varying ways of​ paying the​ capital off .​
This at​ first might seem to​ be a​ complicated area,​ but once you​ have the​ basics explained everything will become a​ lot clearer and you​ will start to​ see how different products will suit your personal circumstances better than others.
2 .​
What is​ the​ Annual Percentage Rate (APR)?
In accordance to​ regulations the​ APR is​ meant to​ appear in​ all adverts alongside the​ headline mortgage rate .​
The APR is​ used to​ provide customers with the​ true cost of​ loans and empower them to​ be able to​ compare different deals .​
Do remember that APR is​ unreliable and is​ no substitute for personal prepared quote that outlines all upfront and ongoing costs.
3 .​
What is​ the​ interest rate that I​ will be charged?
In the​ cases of​ fixed,​ capped or​ discount rate then your broker should tell you​ what the​ initial rate you​ will paying and how long you​ will be on​ that rate for.
4 .​
So what happens at​ the​ end of​ the​ fixed or​ discount rate period?
It is​ important to​ know what will happen when your fixed or​ discount rate period ends .​
Will you​ be switched on​ to​ the​ standard variable rate or​ will the​ lender offer you​ another discounted or​ fixed rate deal .​
Also remember remortgaging is​ a​ good option.
5 .​
Standard Variable Rate – What is​ that?
Because house prices are at​ a​ record high many people (probably including yourself) are now thinking of​ their mortgages in​ the​ long term as​ well as​ the​ upfront rate .​
For this reason it​ is​ worth knowing what current customers are paying .​
It is​ highly unlikely that when you​ come to​ the​ end of​ your fixed or​ discount rate period you​ will be on​ the​ same SVR as​ current customers .​
But you​ can use the​ information to​ see how the​ lender compares against others in​ the​ market.
6 .​
What are the​ Early Redemption Charges or​ Early Repayment Charges attached to​ the​ product?
Most mortgage deals will involve some kind of​ repayment charge .​
So you​ will have to​ a​ fee to​ the​ lender if​ you​ repay your mortgage early or​ switch to​ another lender within a​ set time period .​
Make sure you​ find out precisely what you​ will have to​ pay and what would happen if​ you​ moved home during the​ mortgages term.
7 .​
What will my monthly payments be at​ the​ quoted interest rate?
Your broker should tell you​ exactly what your monthly payments are going to​ be .​
They should also tell you​ what you​ would be paying at​ the​ SVR as​ to​ give you​ an​ indication of​ what you​ will be paying after your products term comes to​ an​ end .​
Get the​ broker to​ work out the​ payments on​ interest rates of​ up to​ 11% as​ well .​
This way if​ the​ interest rates rise substantially you​ will be able to​ see if​ you​ can afford the​ mortgage.
8 .​
Are there any other conditions attached to​ the​ mortgage?
Different lenders will have different deals,​ incentives and clauses .​
Lenders will offer better discounts,​ fixed rates or​ cashbacks if​ you​ are prepared to​ take the​ lenders building and contents insurance .​
This is​ something that will be worth considering .​
Just make sure that you​ are informed about the​ terms and what would happen if​ you​ moved your insurance cover.
9 .​
Are there any Higher Lending Charges?
With some lenders there may be a​ Higher Lending Charge (HLC) if​ you​ are borrowing more than a​ certain amount of​ the​ value of​ the​ property .​
Make sure you​ know what the​ charges are and how much the​ fees are .​
Some lenders will add HLC charge to​ the​ loan others will charge it​ upfront.
10 .​
What are the​ arrangement or​ broker fees?
Your broker should tell you​ about every payment you​ will have to​ make to​ arrange your mortgage .​
This will give you​ an​ idea of​ the​ whole cost of​ the​ deal rather than just an​ upfront rate .​
This will also allow you​ to​ shop around and find the​ best deal.
So next time you​ are looking for a​ mortgage make sure you​ have these ten questions to​ hand.




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