With so many different mortgage products on the market, comparing the available mortgage deals can save you a considerable amount of money over the term of your mortgage. Rates change on a daily basis, and your individual profile may also change, affecting which deals you are eligible for.
To help you to identify the most advantageous mortgage deals, these are some of the key considerations and actions to follow:
Key factors that affect mortgage rates
Mortgage rates in England are driven by the Bank of England base rate and how it is adapted to manage inflation. The mortgage rates that are available to individual applicants vary depending on specific details such as:
- The deposit amount and Loan to Value (LTV)
- The applicant’s credit score
- Stability of employment and consistency of income
- Debt to Income ratio
How to compare lenders and deals effectively
When comparing lenders, you should compare the total costs, not just the interest rate. To do this, you can use best buy tables, which compare the overall costs including initial rate, APRC, setup fees, reverting rate and monthly payments.
You can also use a mortgage broker like James Leighton, who will be able to compare the available deals to find the most advantageous mortgage option based on the ones you are likely to be eligible for.
Fixed vs variable rates: which is right for you?
You can choose between a mortgage on a fixed rate with consistent payments, or a variable rate, which tracks the base rate. Which option you choose will depend on whether you prefer the stability of fixed monthly payments or are comfortable with taking on the risk that payments can go up as well as down, with a variable rate.
