Securing an affordable mortgage should be one of your goals when purchasing property and many would argue that it should be your primary objective. But is it possible that the cheapest mortgage you can find might actually cost you more money down the line?
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Unfortunately, it is possible. If you are looking only at headline rates and not fees (or vice versa) you could be getting into a less than stellar mortgage deal.
Earlier this year, Telegraph Money revealed that if potential home buyers only pay attention to headline rates, it could cost them hundreds of pounds, and other outlets have confirmed the problem has only worsened throughout this year. Borrowers could now be out as much as an extra £900!
It’s no secret that lenders have a variety of products to choose from – all with different terms and conditions.
It appears there is something consistent across all the major lenders; Nationwide Building Society, Santander, Barclays, HSBC, and NatWest. No matter which provider you end up choosing, you will find two and five year fixed rate deals with great rates but the deal loses a bit of its shine when you add in fees and other charges.
If you simply considered another deal with a slightly higher interest rate but lower fees and less charges, you could end up making big savings.
Working out the total cost of your mortgage is a crucial step in the property buying journey. It seems that taking both interest rate and long-term cost into consideration is often overlooked.
It might take some time up front to calculate all possible scenarios, but it puts all the deals you might be reviewing onto a level playing field. So it’s an exercise that is a huge time investment, but the cost savings in the end will be well worth it.
Get help choosing the right mortgage for you
With the sheer number of lenders, as well as the complexity of offers available, the mortgage application process might seem daunting or confusing. Working with a mortgage broker is the perfect solution to ensure you have secured the best mortgage you can get.
Dental & Medical Financial Services specialises in helping dental and medical professionals secure mortgages – from first time home purchases to buy-to-let properties.
We’ll coordinate communication between all parties involved in the sale and guide you through the entire mortgage application process, ensuring it goes smoothly and without incident.
Because of our years of experience, we’re best suited to hand-pick the right mortgage for your individual circumstances when you are ready to hit the property market.
Need help to secure a low-cost mortgage?
Mortgages | Buy to Let | Property | Mortgage Planning |
Dental & Medical Financial Services have been helping doctors and dentists with finding low-cost mortgages for your home and investment properties for over 25 years. Call Chris to discuss your options.
Tel: 01403 780 770