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Your first step is to contact a recommended mortgage broker. A good independent whole of market mortgage broker will compare mortgages from dozens of providers to find the best deals. This will be based on your circumstances and will include how much you can borrow, what your loan to deposit is and what the repayments will cost you.
Depending on your credit score, employment history, and debt-to-income ratio (a ratio below 20% is considered best), lenders offer different types of mortgages. Several lenders also offer special deals only available through the broker network that are not available direct to the customer. In general, to get the best rates, you need a higher down payment as the lender has less "risk", and also a very good or an exceptional credit score is beneficial.
A mortgage broker will be able to talk through any variables with you, such as if you choose a shorter loan term, your payments will be higher, but you'll pay less interest over the life of the loan. Getting the right mortgage or remortgage deal can save you money each month, and during this cost of living crisis, these savings can make a world of difference.
Your credit score and report
A good credit score and report are vital in getting the best mortgage rates. Lenders use this information to measure how much risk you pose as a borrower, and the lower the score, means a lender may think there's a higher chance you'll default on your payments.
There are various ways you can improve your credit score, such as:
Check your credit report regularly and look for mistakes and fraud.
Ensure you are on the electoral roll by registering to vote
Use a credit card little and often - ideally, no more than 30%
Don't apply for a lot of credit in a short time.
Pay your bills on time/
Don't repeatedly miss payments.
Don't think the best rates are just for a new mortgage!
We review each of our customers' mortgages close to their remortgage date to ensure they get the best deals. Don't think you are stuck with your current provider, as this doesn't have to be the case. Get in touch as you may be able to get a better deal. We look at all areas, such as potential overpayment fees and early repayment fees. However, typically the best time to remortgage is when the term on a fixed rate mortgage is about to expire.
As mentioned, we often have access to special deals and know which lenders are most likely to lend to you at the best rates. We scour the market to find you the best mortgage rates, and we understand each lender's criteria and will be able to recommend the right products for your needs.
So if you want the best mortgage rates, please get in touch and talk to one of our experienced advisers who are here to help.