Choosing a mortgage
‘Neither a borrower nor a lender be,’ urged Shakespeare, but he didn’t have to live through a property boom. Unless you’ve recently won the Lottery, you’re probably going to have borrow a lot of money to buy somewhere to live. Yet, despite the fact that selecting a mortgage is one of the most important financial decisions you ever make, some people put more effort into deciding what sort of personal stereo to buy. A little bit of research can save you thousands of pounds and give you priceless peace of mind.
You can usually only borrow up to 95% of the property’s valuation – 100% mortgages are available but high rates of interest make them prohibitively expensive. You might pay 1% more to borrow at this level – better to save for a deposit. Many lenders give better deals to people with large deposits so it can make sense to dip into savings to get one.
Most people choose to repay their mortgage over 25 years but it’s not compulsory. If you are an older buyer and want to make sure the loan is repaid before you retire you can choose to pay more each month over a shorter period.
Choosing a mortgage
Where to get one
Will I get one
