How to Compare Remortgage Deals Side by Side

When it comes time to compare mortgage and remortgage terms, the piece of advice you'll hear most often is to be sure to compare like loans side by side. After all, they'll tell you, you can't expect to compare apples to oranges and come up with a comparison that makes sense. When it comes to remortgage deals, though, part of the comparison process is deciding which TYPE of remortgage is the best one for you. The most common comparison point - the APR - isn't always the best or only way to choose which remortgage deal is right for you. So exactly how DO you compare mortgage details to be sure you're getting the best deal?

There are two ways to compare mortgage deals to decide which is the better financial deal for you right now - by total cost and by monthly payment. Which method you use depends on your purpose for seeking a remortgage in the first place. If your main aim is to lower the monthly payment you're paying, you'll want to compare mortgage payments per month first, and the total cost of the remortgage second. If your aim is to shorten the time you're paying or to lower the total cost of your loan, then you'll compare mortgage total costs first, and then the other details.

Compare Mortgage Total Cost vs. Compare Mortgage Payments

How do you decide between the total cost and mortgage payments? Imagine your mate at work loaned you 20 quid and said you could pay him back at either £1 a day for the next month or £5 a day for the next five days - and any day you don't come up with the cash, he'll punch you in the nose. In the first case, you'll pay him back £30 for £20, but who can't scrape together a quid a day? If you choose the second, you'll pay him back only £5 above what you borrowed, but it's a bit stiffer to come up with £5 pounds each day. The better deal depends entirely on whether or not you can manage a higher payment each day.

Doing the Math

In either case, you'll want to compare mortgage costs, and when you do it's important to add in all of the costs to remortgage. That includes the total interest paid, any fees and closing costs you're charged and any redemption penalty you'll have to pay on your old mortgage. Don't forget to factor in special incentives when you compare mortgage terms side by side.

With the current financial climate, it's not difficult to find lenders willing to reduce their fees, or even charge you none at all. Other lenders may offer you little perks like letting you finance their fees along with the loan - you'll still pay the fees, and pay interest on them to boot, but it may make it possible for you to take a loan that you couldn't otherwise. In the end, it's important when you compare mortgage terms side by side that you include all the terms on each mortgage so that you can evaluate the best mortgage for your needs.

How to Compare Mortgage Options and Deals

How to Compare Mortgage Deals

As a mortgage is typically a rather large loan to which you are committing yourself to consolidating over a period of up to thirty years, the choice of mortgage plan becomes very important indeed. Remember that if you make a mistake in choosing your mortgage, the ultimate cost could be losing your home.

Property is a great investment though; therefore the risk should be well worth it, especially if you take care to make the right choices. The benefits of property ownership should be compared to the cost of the mortgage and the risk involved, allowing for an informed and rational decision of whether to buy or not. The question is... how do you find the best low rate mortgage?

If you are reading this article, then you are well on your way, because the most efficient way to compare mortgage deals is by exploring the internet, here you can locate excellent websites providing mortgage help such as free quotes and all the information you need on the diverse payment plans and the related benefits or compromises. At the end of the day the goal is to find the lowest mortgage rate for the amount you want to borrow and the time period over which you want to pay it off. To do this you need to locate the best type of deal for you, with regard to capital amount and payment plan, and then compare the rates.

Naturally there will be the variation in mortgage rates from firm to firm, in part determined by the sum total of the loan and the period of repayment. Beyond these variables lie the factors which should aid your hunt for the best mortgage deal. It is therefore important that you look into all the options available on the market.

The final determinant, or basis of the rate you will find yourself paying, is the financial market and as such you should find the rates quoted to you lining up to the firm's standard variable rate, or a tracker rate tied to the Bank of England's repo rate. To spice things up many firms offering mortgages package their deals with options of fixed mortgage rates, adjustable rates, capped rates cash-back deals or discount rates. It is important to understand the implication of opting for any one of these options, and then weighing up the convenience and the cost which it will incur upon your monthly budget.

Finding the most suitable mortgage for your individual circumstances and getting it at the lowest rate are both factors which can considerably minimise or reduce the risk factor of taking out a mortgage to buy property. Ultimately you need to ensure that you can comfortably meet your mortgage repayments over the time it takes to gain complete ownership of your new property.

What Is a Mortgage Advisor

If you are considering purchasing a property for yourself, to let to tenants, re-mortgaging, or looking at any other form of mortgage, a visit to the mortgage advisor is probably on the cards. There are different types of mortgage advisor and it is important to make sure you get all the relevant information before making your mortgage decision.

A tied mortgage, or single lender advisor may start off working in a bank or building society. Mortgage advisors working in this kind of role and establishment are only able to offer you products available from their employer, this should be made clear at the outset. They can recommend the best products available from their firm for your situation and help you with application paperwork, and any other questions you may have. However they cannot help you with advice relating to other products or information outside of their company.

Multi-Tied mortgage advisors can be found mainly in estate agents. They work with a limited number of mortgage lenders and will recommend from a select few mortgage lenders that they work with. While multi-tied advisors can offer you more choice than a single lender mortgage advisor your choice is still very limited and you may not be getting the best deal available to you.

An independent mortgage advisor will normally work in their own office or sometimes within an estate agent, but never as part of a bank, building society, or other similar set up. The main difference between the single lender and the whole of market independent mortgage advisor is that the independent advisor should have access to the entire market - every mortgage from every lender that is applicable to you. The tied advisor can only offer you a very small proportion of what is on offer as they can only offer products from their own company.

When you make an appointment and visit your mortgage advisor you may want to out aside at least an hour or two, and take in proof of identification and proof of earnings for the last 3 months or so. They will need other bits of information as your application progresses, but this should be all for your first meeting. You may be dipping your toes into the mortgage market for the first time to see how the land lies, and if a mortgage is even possible in your current circumstances. Alternatively, you may have sold your last house and be ready to buy another having found the most suitable mortgage arrangement.

Your mortgage advisor will need to ask a number of questions appertaining to your financial situation, so if, for example, you are unsure what the balance of your credit card is or how much your car lease costs per month, find out and if possible take the paperwork with you to the mortgage advisor. The first visit is sometimes called a Fact Find, as it is a research session on behalf of the mortgage advisor to build a clear picture of what options are available in your situation. Your advisor will need to determine how much you can afford as a deposit and as a monthly payment, with all other outgoings considered such as loans, bills, insurances, and any other regular payments you have to make.

One of the biggest considerations to make when choosing your mortgage is the fees involved. This is a tricky area and you may find yourself paying much more than you expected via mortgage penalties if you do not fully understand the agreement you are signing. To ensure you find the deal best for you be sure to talk to a whole of market independent mortgage advisor who can give you the big picture and help to find you the best deal available.

Philip Loughran writes on a number of subjects from travel to law, automotive to education. For mortgage advisor in Portsmouth and mortgage solutions Portsmouth he recommends Choice Financial Solutions.

Independent Mortgage Advice and Advisers

When it comes to choosing a mortgage the options can be overwhelming. Getting the right mortgage advice is essential for making the best financial decisions for your future, and it can be a bit if a minefield. In this article we hope to help you understand why it may be in your best interest to speak to an independent financial adviser, and the pitfalls of not having enough advice to make an informed decision about your mortgage choices.

You can obtain mortgage advice from a wide range of sources; your estate agent, your bank, your building society, or an independent mortgage advisor. Many banks, building societies and estate agents are what is called a 'tied adviser', their advice and the products they are allowed to offer you can only come from one source. Many banks and building societies only wish to sell you their own products, they do not work on the behalf of other companies. Bank or building society employed mortgage advisers will usually be able to provide you with a range of options for your mortgage, sometimes with slightly preferential rates if you are already a customer. However, this is a very limited range of options compared to the wider market and you may not be getting the best deal you could.

Estate agents will often be restricted to a partner or panel of mortgage brokers with whom they work, they may be tied advisers or multi-tied advisers, meaning they have access to a limited number of companies. Mortgage advisers in estate agents are usually able to offer advice from these partners and panels, providing more choice than a bank or building society, but not always giving you access to all available options as they are limited to offering mortgages from these select companies. However this is not always the case and some estate agents will be able to offer access to the whole of the market. Estate agent mortgage advisers will often charge a fee for their services, this may range from £95 to £500 but is entirely dependent on their company policy and other factors.

Independent mortgage advisers may operate differently to the aforementioned businesses. By being independent these advisers have access to the entire mortgage market, and can offer you the widest possible choice for your situation and requirements. They are not tied or bound to one or a number of mortgage brokers, and can access deals and offers from any mortgage company. This helps to offer you the widest choice and the best deal for your mortgage.

Independent mortgage advisers will rarely charge a fee to the applicant. Their mortgage advice fee is paid by the mortgage lender you decide to use, unless you choose to pay the adviser yourself and claim the commission from the lender later. Usually the first meeting you have with an independent mortgage adviser is free of charge, where they work out the best mortgage deals for your requirements and fully explain their fee structure before progressing to arrange a mortgage for you.

Philip Loughran writes on a number of subjects from travel to law, automotive to education. For mortgage advisers in Portsmouth and independent mortgage advice Portsmouth he recommends Choice Financial Solutions.

On Line Mortgage Quotes

The mortgage industry is a very competitive one, so if you are on the market for a mortgage, or refinancing your existing one, you may want to consider getting a few quotes on line.

By obtaining a few quotes on line, you are in no way committing yourself to anything.

Due to the competitive nature of the mortgage industry, it really wouldn't hurt to post an on line application at a secure sight, and allow for four or five loan officers or brokers to compete for your business.

Obtaining an on line quote is very simple, not to mention, very safe. When going through this simple process, you are asked for very limited information. At least enough for a loan officer to get a general idea of what you are looking for.

One of the many benefits of obtaining on line mortgage quotes is the fact that you barely have to do anything except point and click. Once this is accomplished, you will receive anywhere between three and five phone calls, usually within forty-eight hours from loan officers who are interested in doing business with you.

Another benefit of having four or five loan officers assess your situation is that you will have the option of choosing the best rate and loan program to meet your needs and your budget.

When shopping for on line mortgage quotes, most loan officers understand that you are shopping around and speaking with other mortgage companies.

The last thing a loan officer wants is for you to take your business to their competitor. This puts them in a situation to find you the best rate and program available.

Shopping for an on line mortgage quote is definitely worth a try, and costs absolutely nothing. Remember you are not committed to anything, so why not give it a shot? Good luck.