Compare mortgages in the UK without the hassle
Whether you’re a first-time buyer looking to get on the property ladder in a challenging market, or an existing homeowner looking to secure a better mortgage deal, it’s essential for you to go and compare mortgages in the UK. Our efficient price comparison engine matches your personal situation with dozens of deals from reputable lenders – no matter what your circumstances are. So, why not give our site a shot today – you have everything to gain and nothing to lose!
Here are the main comparison factors you need to consider as you get comparing:
For new first time buyers, the loan to value (LTV) ratio of your mortgage
The LTV ratio determines the deposit you need to put down on the property you’re after before the rest can be borrowed. So, if you go for an 80 per cent LTV mortgage on a £200,000 semi-detached house, it would mean that you would need to contribute £40,000 before the remaining 80 per cent, £160,000, is lent to you. These ratios do fluctuate from lender to lender, and that’s why it’s important to try to save as much money for a deposit as possible. The more you borrow, the higher your interest rates are likely to be.
The interest rates you are paying for your mortgage
This is applicable for both new and existing homeowners. Interest rates are generally determined in three ways: fixed, variable and tracker. A fixed mortgage can be useful when the base interest is low, such as at the moment, where the Bank of England base rate is 0.5 per cent. This lowers the cost of borrowing, and is good news when you go and compare mortgages in the UK. This type of deal allows you to freeze the interest on your loan for several years, meaning that your monthly expenditure won’t shoot up. Tracker and variable mortgages are different, as they monitor the progress of the market, meaning that what you pay is dependent on changes in the base rate. This is normally useful when it is expected that interest rates will go down in the coming months, but as the base Bank of England rate is at its lowest point in history already, this is unlikely.
Fees involved with getting a new mortgage
Sometimes, the cost of arranging a new mortgage can soar into hundreds or even thousands of pounds. When you go and compare mortgages in the UK, try and get good value on the fee you pay, but don’t go for the cheapest out there as it could result in a higher APR.
So, there’s the basics you need to know when you’re ready to go and compare mortgages in the UK.
