7 Key points to check on your Mortgage Quote
Matt Poole ??
Mortgage Expert for Business Owners | Simplified, Fast-Track Solutions Using Your Business Profits - Not Your Personal Income!
Working your way through a mortgage quote can be a daunting prospect with all the regulatory wording and figures all over the place.
When going through a mortgage quote there are 7 key areas to look out for to make sure you have the right mortgage.
Firstly check Section 3 and the amount you are looking to borrow is correct. This section will also tell you if any fees are being added to the loan.
Check the term of the mortgage is also correct.
This section will also tell you the interest rate that is being quoted. It is also important to check this is correct.
Section 4, The Annual Percentage Rate of Charge (APRC) if you are obtaining multiple quotes then use this APRC to compare the overall costs of the mortgages you are considering.
Section 4 will also show you the fees that are involved with taking this mortgage out.
Are they paid upfront or added to the mortgage? Are you comfortable with the fees being charged? Remember, if you are adding fees to the mortgage then you will also pay interest on these fees for the life of the mortgage.
Section 6 will show you the proposed monthly payments of the mortgage. It will show the monthly payment during the initial deal period and also once the deal ends. Remember, always look to review your mortgage around 4 months before your current deal is due to end to give you plenty of time to arrange a new deal.
Section 8 - additional obligations. This section will tell you if you HAVE TO take any other products with the lender.
Lenders don't usually insist on anything else being taken but you WILL need to make sure you have buildings insurance as a legal requirement.
Section 9 - Early Repayment Charges. Lenders tend to be flexible with mortgages, even if you are in a tied interest rate.
If you are planning on making hefty repayments during the initial interest rate period just be cautious of the potential penalties you may incur by doing so.
Section 10 - Flexible Features, Lenders nowadays will generally allow you to overpay 10% of the outstanding balance per year without penalty. Making regular over-payments on your mortgage can have a massive impact.
It will reduce your overall balance quicker, it will mean that you pay less interest and you can also reduce your overall mortgage term. If you think interest rates will rise due to Brexit then now is a great time to take advantage of this facility whilst interest rates are so competitive.
If you would like to hear in more detail please watch my video below and look out for more finance tips in #MortgageMonday
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