1/ Consider Trying to over pay the mortgage!
For example, if you borrow £100,000 at 6% over 25 years, you'll pay it back
at £643 a month. The total charge for credit will be £93,000.
But if you can overpay by £100 a month you'll clear the loan in less than 19 years,
giving you 6 years of mortgage-free living and saving a staggering £25,000 in interest and saving you thousands of pounds.
2/ Consider whether you really need such a large mortgage.
It makes me smile that people with 0-2 kids want a mansion, when two generations
ago their grandparents were sleeping six to a small property, and they managed just fine.
3/Start saving asap.
Every pound saved is a pound towards your deposit. A pound towards your deposit
is a pound you'll not be paying interest on. People think it is great if they get a 95-100% mortgage. But it's
their lender who are laughing at the bank.
4/Shop around for mortgage quotes.
This one is very obvious but it is surprising how many people take the first mortgage offer
that their bank or broker offers. You should be looking to get at least 4 quotes.
5/Check your credit report.
Because lenders place so much on this you should check it out before applying
as it has been reported that as many as 50% of all credit reports contain inaccuracies. Allow time to review and correct any
as this could save you 1000's of pounds. You can get your credit report for free from EXPERIAN
6/Get your mortgage Pre-Approved.
This gives you additional bargaining leverage. A home seller may be more likely
to accept your offer with pre-approval than another buyer without it.
7 /Read the weekend newspapers.
These normally list some of the best mortgage rates available in their weekend
8/ Look at the list below for the UK's largest mortgage lenders.
The Tip here is that if they were not offering a competitive deal they would not have such
a large share of the mortgage market.
9/ Look at the mortgage facts page on the right to see the rates various
mortgages were costing on the last update. (remember these are historical mortgage figures)