Need a better deal? Call 0800 977 548
Buying new proprety? Box line

Buying new property?

Complete the application form below to choose from a variety of mortgage products.

Read More
Changing your mortgage? Box line

Changing your mortgage?

We help you make sure that you get the best mortgage deals on offer..

Read More
Want the Best Deals? Box line

Want the Best Deals?

Our mortgage experts will work hard to find you the best mortgage deal to suit your needs.

Read More

Choosing Mortgage deals - Help and advice

Before buying a mortgage there are certain vital points that must influence your decision making. Belo is a useful mortgage guide which provides you with some essential factors that need to be considered before getting a mortgage.

Upfront costs:

Even before you begin to pay the amount for the mortgage you must remain be ready for some upfront costs. Such expenses include:

Valuation Costs: As you will be giving your property as security for the mortgage loan, your lender will make sure that it is worth the value as the documents state. The level of scrutiny applied in valuation depends mainly upon your lender and your property. Normally, lenders check enough of the property structure and condition to make sure that they don’t over lend on a property that may not be worth anywhere near the loan.

Mortgage Application Fee: Lenders often demand a mortgage arrangement fee, which is essentially the application for the loan. Most lenders will include this fee it in the overall mortgage cost. Its amount usually depends upon the type of loan offer and the lender.


Learn What Amount You Need to Take Up:

Before proceeding with fulfilling the dream of having a perfect home, you must learn what amount of mortgage you need to take up and what amount you can afford to borrow. Your lender will make this key decision. ‘Loan to Value’ amount (LTV) is very important in this calculation which is the ratio between the amount of mortgage and the value of property.

Go Deeper Into the Mortgage Rates:

Mostly mortgage rates are dependant upon the ongoing rate between inter-bank borrowing and the base rate of Bank of England. Rates may change according to the type of mortgage loan and in the end it can make a huge difference. You must go deeper into the mortgage rates, as there may be some high fees to be paid as well.

It is also advised that you check out the true or net cost of your mortgage. The figure may seem a bit too frightening but actually, it only reflects on the cost you will have to pay over a long period. If you have a 25–year mortgage then you should expect the cost to fluctuate, but otherwise, it gives you a good view of what you will be paying in the next decade or so.

Repayment of Loan:

If you happen to have a repayment mortgage, then your repayment installment settles both the amount of interest and the steep figure of capital. The repayments are accurately calculated at the end to make sure that you have successfully repaid the whole mortgage loan.

‘Interest Only Mortgage’ is considered to be a cheaper option as compared to the repayment mortgage, but regardless of your monthly payments, the loan amount often remains outstanding in the end. Therefore, the savings made by the mortgage must be directed towards a savings plan which ensures that the mortgage is paid at its due date. Savings plan can sometimes enable you to repay the debt earlier than the due date, but you must also make yourself ready for a situation where the plan underperforms, failing to reach the required amount at the due date.

There are various options open for you to choose from different types of mortgages including; a fixed rate mortgage, variable rate mortgage and discounted rate mortgage either on repayment or interest only basis.

Are the repayments within your reach?

Normally, a lender takes all the necessary measures to calculate what amount the borrower can repay, but you must still have access to a contingency fund as a last resort..

You must know that fixed rate mortgages give you the allowance of calculating your budget accurately, while mortgages with varying discount rates allow you to lower the cost in the first few years.

Portability Can Give You Advantages:

If you have a portable mortgage it enables you to stick with the same lender even after moving your house. If you happen to have a fixed rate or discount rate deal, then you may as well get a rebate in early repayment fees. So if you are planning on moving in the next couple of years, then it could save you a substantial amount.

Insurance in Mortgage:

Your lender will usually ask for a home building insurance policy which covers the normal risks. It will make sure that their security is secure and will not obliterate due to some unforeseen occurring.

On the other hand, home contents insurance can be useful in securing the household items and appliances against threats from theft, fire and earthquake etc.

Mortgage payment protection is also a great feature for borrowers as it secures that their repayments even if they suffer from unemployment or sickness.  But read the small print of the policy carefully to ensure that you perfectly understand the conditions of the insurance cover.

Life insurance policies for mortgage holders taken to secure the amount of mortgage ensure full payment of the mortgage if the policy holder dies.

Mortgage Broker:

Many people ask the services of a professional mortgage broker to deal with the complexities and find a way out. If you intend to call upon the services of one, then you must take care that he is authorized by the Financial Services Authority. You can still make things clear by checking the register of FSA authorized companies.

.CALL US FREE ON: 0161 8774142


Contact us to get help on choosing the best mortgage deal.