Mort­gages: Pro­tect your credit rat­ing...

Macclesfield Express - - SPORT -

IF you’re look­ing to get on the prop­erty lad­der for the first time, the range of mort­gage op­tions and rate types may be some­what baf­fling.

Pete Mu­gle­ston, di­rec­tor of On­line Mort­gage Ad­vi­sor, has some hints to help you to be more con­fi­dent about mak­ing the de­ci­sion that’s right for you.

He said: “In short it’s eas­ier to group mort­gages into two types, fixed rate or vari­able rate.

“Any mort­gage you take is likely to have an ‘ini­tial pe­riod’, where you are on a set fixed or vari­able rate for ei­ther two, three, or five years, and then you switch to a lender vari­able rate, at which point you can just shop around again for the next best ini­tial rate.

“Broadly speak­ing, those want­ing cer­tainty of pay­ment and se­cu­rity against rate rises would be ad­vised to go fixed, those not con­cerned and want­ing a slightly cheaper pay­ment might con­sider vari­able, but with some out­ra­geously cheap fixed rates at the mo­ment it’s hard to over­look them even if you think rates are likely to re­main low.”

What­ever mort­gage you go for, don’t be pulled in by just a re­ally low rate; con­sider the fees and to­tal cost of bor­row­ing over that ini­tial pe­riod, as of­ten it’s not the lowest rate that works out the best over­all.

Pete added: “Ab­so­lute best ad­vice would be to use a mar­ket bro­ker who isn’t lim­ited in the num­ber of lenders they can go to, and they can do all this for you.

“Go­ing to your bank might seem eas­ier, but wait­ing for an ap­point­ment - and per­haps only be­ing of­fered one set of prod­ucts for which you could end up be­ing de­clined - isn’t ideal.

“This is es­pe­cially true if your situation is more unique in terms of credit his­tory is­sues or in­come, as the good bro­kers out there will know which lenders are most likely to ap­prove you be­fore ap­ply­ing, sav­ing you time, money, stress and help­ing pro­tect your credit score.”

●● On­line Mort­gage Ad­vi­sor Peter Mu­gle­ston, in­set

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