Well at the moment it very much depends on your circumstances. The best mortgage deals to suit you and any family or life partner will come down to your ability to pay, and more significantly now the deposit you can put up towards the property.
Deposits from a couple of deals in the 10% range with most needing 20% and those best mortgage deals available reserved for those who would have a loan-to-value of 60%, meaning stumping up a mega 40% deposit to secure the mortgage.
There have been some eye catching headlines recently with some fantastic rates being offered but you must always remember to read the small print. Many will ask for that very demanding forty per cent to secure the mortgage however they will often offer you a slightly higher rate for less deposit to offset the risk they see.
Fees are another aspect to look out for when searching for the best mortgage deal. Arrangement fees can run from just a few hundred pounds to thousands of pounds. Take the time to calculate the total repayments involved as a lower rate can have the benefit dwarfed by fees put on top. Final fees or exit fees can often apply so make sure you understand the costs of trying to exit the mortgage at a later date.
Finally the term associated with the mortgage is a huge factor when determining if it really is the
best mortgage deal . You may have come across a rate you consider a really low rate but you have to consider how the market will be when that deal comes to an end. If you go with a two year fixed rate mortgage you could find yourself overpaying as the market hasn’t recovered and interest rates are still low or that they have jumped and you are have lost out on getting a better mortgage deal to begin with.
Hopefully this will give you something to think about and help you find the right option for you. However as I always say, seek expert financial advice so you get an individual review that takes your circumstances into account.
