UK Mortgage Comparison
In recent years the options open to you if you are looking for a great mortgage deal have improved significantly. 2,3,5 and 10 year fixed rates are at all time lows.
Whilst rates are low the right mortgage deal for you will depend on your personal circumstances.
Things to be mindful of include:
- Lenders are keen understandably to ensure at the end of the mortgage term the loan will be repaid. Criteria for lenders will vary but all will want to understand how you intend to pay off the mortgage at the end of the term. If you opt for a repayment mortgage, your monthly repayment will include a portion of capital repayment. With an interest only mortgage you will need to have an alternative repayment strategy.
- A repayment vehicle strategy will be required. Some lenders will accept sale of property as a way of paying off the debt. Some will want to see a saving plan such as regular investment into ISAs or investment vehicle. Where sale of property is not acceptable to lenders, they will often want to see statements of your investments as evidence that a repayment vehicle is in place.
- Lenders will want to ensure your income supports the mortgage repayments. Most lenders work on an income multiple basis (typically up to 4.5 times annual salary)
- Previous credit history - If you have had credit blips in the past this may effect the rate of interest offered to you.
A key consideration for lenders is affordability when they lend. In assessing whether an interest only mortgage is right for you income criteria will come into play.
For example for a £100k mortgage, a lender typically would need to see an income between £20,000 to £30,000 depending. Some lenders offer higher income multiple mortgages for professionals e.g. doctors or lawyers.
This criteria will vary so if you are unsure speak to a broker such as ourselves will help you get the right deal for your circumstances.
Independent Mortgage Advice
Remortgaging is particularly popular at the moment as interest rates are low.
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Whether it will be a good idea for you to remortgage depends on a number of factors, including your goals and your personal circumstances.
However, in general, if interest rates are lower than you are currently paying on your mortgage, it may be a good time to remortgage.
If interest rate are higher than you are currently paying, it may be better to look at other options, such as a second mortgage or a personal loan (if you aim is to borrow more).
If you are not sure whether now is the right time to remortgage, it is a good idea to speak to an independent mortgage broker who will be able to offer impartial advice.