Best Quote Mortgages

 


Frequently Asked Question

  1. What is a mortgage broker?
  2. Why use a mortgage broker?
  3. How much can I borrow?
  4. What is the best term to consider?
  5. Will I need mortgage insurance?

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1. What is a mortgage broker?

A mortgage broker finds you the best deal on a mortgage based upon your financial circumstances and goals. Rather than working for one financial institution, brokers are whole of market and therefore deal with a variety of different financial institutions. With access to over 50 lenders, including private lenders, you can have access to specialty mortgages that may not be available by conventional sources. This allows you more choices and more competitive rates.

 



2. Why use a mortgage broker?

To save yourself time and money! New features and products are being introduced everyday contributing to the complexity of the UK industry making it harder for you to determine which Mortgage best suits your financial goals. Mortgage brokers can hunt down the deals consumers are finding they don't have the time or expertise to do so themselves. One in five UK mortgages is now handled by brokers.





3. How much can I borrow?

This is normally based on income multiples, affordability and deposit. A mortgage provider will typically pay 3 or 4 times the applicant or joint applicant’s income. So if your income is £30,000 you will probably be offered in the region of £90,000 - £120,000.  A lender will also look at the affordability of the applicant including bank statements and any outgoing payments. The ‘tidiness’ of your accounts and ‘maxed’ credit cards will be taken into account at this stage. The larger the deposit you have, the more options you will have. Most lenders will offer up to 95% of the property price. So, if the property is £100,000 you will need a minimum of £5,000 deposit. Some lenders will offer 100%, however these deals commonly come with high interest rates and fees.

 

Please keep in mind there are also valuation payments, lawyer fees and stamp duty that you will also have to pay when buying a home. More info



 

 


4. What is the best term to consider?

Generally, the shorter the mortgage term the lower the rate. However, many people prefer the comfort of a longer-term mortgage. This is an area where your mortgage broker can assist as everyone’s financial circumstances and goals are different.



 

 


5. Will I need mortgage insurance?

A mortgage is a large debt and should be life insured to protect your family. Some lenders can include life insurance as part of their cost; others will let you insure the mortgage yourself. BestQuoteMortgages recommend insuring, and can help you source a policy however, the ultimate decision is your own.