What is the best mortgage on the market?
You’re not alone in wanting to know the answer to this question – it’s one of the most-searched property-related questions on Google.
Most mortgage searches start with comparison websites but while they can give you a useful guide to what’s available, mortgages are complicated, and unless you know what you’re doing using a comparison site to decide which product is right for you may not serve your best interests.
Here’s a simple fact: there is no single ‘best mortgage’, just like there is no single ‘perfect house’ that fits everyone’s needs. However, there is a ‘best’ mortgage for you – we just need to find it.
There are a few things to think about as you prepare to source your perfect mortgage:
Sometimes the overall cost of a mortgage can outweigh the benefits of a low interest rate. Watch out for arrangement fees, legal fees, overpayment fees and early repayment fees. These can be a stinger if your financial situation changes for the better (e.g. pay rise, bonus, inheritance) and you want to pay more of your mortgage off earlier.
Also, if the administrative costs end up in the thousands you might have been better off with a cheaper product offering a slightly higher interest rate.
What mortgage term?
Long-term fixed rates of more than five years can look very tempting because they offer long-term certainty, but that doesn’t necessarily make them the right choice for you. Committing to a five-year agreement may mean you won’t feel the benefit if national interest rates drop or your circumstances change.
Equally, it’s rarely if ever in your best interests to be on a lender’s standard variable rate (SVR) – they tend to be more expensive, meaning you’ll end up paying more in the long run.
Ideally, depending on your circumstances, you should be looking to find a product that gives you immediate security over your repayments without tying your hands in the future – and only you will know what that looks like for you (although working with a professional mortgage adviser can help here – more on that further down!)
Strike a balance
Now you need to balance the cost of the product with the security the mortgage term gives you. Again, that’s a very personal formula, but one a mortgage broker like Oportfolio can help with.
Sort out your credit score
Your credit score helps lenders – from banks and building societies to retailers – to assess the risk you present as a borrower. The higher your score, the more confidence lenders are likely to have in you. Knowing your credit score helps you to plan better and lets you manage your own expectations.
Pay the largest deposit you can reasonably afford
Often, those paying a larger deposit are able to access products with more attractive rates, and that obviously saves you money in the long run.
You may be tempted to go straight to your bank, who may offer you a loyalty discount, but this still doesn’t mean it’s necessarily the best deal for you. A mortgage is probably the biggest financial commitment you’re ever going to make, so you owe it to yourself to do some market research.
Why work with a professional mortgage adviser?
We regularly come back to talking about how important it is to factor your future plans into your thinking. At Oportfolio we want to future-proof all your financial commitments as much as possible. So, we’ll explore with you what life could look like in the future; the potential of kids, upsizing/downsizing, travel, promotion, relocation, etc.
We understand that the best mortgage you can get is the one that is best suited to your needs – not just today, but tomorrow and beyond.
That’s why our expertise can provide everything you need to make the right decision in finding the right product, for you:
You’ll get advice from us that is tailored to your situation, and that’s always beneficial.
You won’t always find the best mortgage online – a mortgage broker may well have access to products you won’t find on a website or on the High Street.
We can help you find a product that works with your future plans – if your life is going to have lots of changes (e.g., you have kids!) then you may want a mortgage that is flexible and can change with you.
At Oportfolio we can explain the pros and cons of interest only and repayment mortgages for you so there are no hidden surprises down the road.
We’re also experts at translating financial and legal jargon, so if you want a simple answer to ‘Am I better off with a fixed-rate or tracker mortgage?’ we can make sure you understand what the difference is and what’s best for you.
We’re always happy to chat and now, of course, you’re also very welcome to pop into our Putney office and speak with us about providing quality, tailored financial services for your next mortgage.
And remember – a mortgage is secured against your property until you have paid it off in full. This means the lender could repossess your home if you fail to repay it, so making sure you can afford the repayments now and in the future is essential.
Oportfolio Limited is an appointed representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority
Your property may be repossessed if you do not keep up repayments on your mortgage.
Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295.