SUE’S GUIDE TO Bagging The Best Mortgage Deal
The Bank of England base rate nudged up again in August, which means you could be paying more on your mortgage.
You’re safe if you’re on a fixed rate, but anyone on a tracker mortgage or their lender’s Standard Variable Rate could see monthly payments go up.
Looking for a better mortgage deal? I’ve got the lowdown on what to check.
Don’t assume the lowest rate is what you’re looking for. Most fixed or tracker deals come with fees attached. Online mortgage broker Trussle did some sums and found one lender’s two-year fixed deal cost nearly £900 more than one of its higher rate deals.
Here’s how to make your mortgage maths stack up:
Look beyond the headline rate. Don’t just look at monthly repayments. Factor in any fees, like mortgage arrangement fees when comparing mortgage deals.
Check the small print. Planning on overpaying to clear your loan quicker? Check the rules first. Some lenders impose limits on how much you can overpay or there may be penalty fees.
Shop around. Your current lender will be keen to chat but remember they’ll only tell you about their own deals, which may not be the best ones.
Get savvy. Pop your details into the Mortgage Best Buys tool at WWW.MONEY SAVINGEXPERT.COM. This covers the whole of the market including deals available to brokers. Check the Total Cost section which looks at both interest and any fees.