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Mortgages
| First
Time Buyers Fail To Shop Around |
Almost two thirds
of first time buyers accept the first mortgage they are offered
and fail to shop around, often missing out on better deals.
Many first time
buyers feel pressurised by their estate agents into quickly organising
a mortgage for fear of losing out on a property or are attracted
to a low interest rate without looking at the mortgage deal as a
whole.
However, with
such a vast range of mortgage lenders to choose from, first time
buyers are well advised to step back and do a little research before
they commit.
There are a
number of places to find good mortgage deals:
Speak To
Your Bank
Your bank or
building society may provide special offers to their account holders,
but don't feel that you have to accept their offer through customer
loyalty as there are many other places to look.
Consult With
A Financial Advisor
Financial advisors
can offer you a range of mortgage deals to choose from that are
appropriate to your circumstances. Some financial advisors offer
free advice, but can only provide a limited range of mortgages,
through which they earn a commission.
Independent
financial advisors will offer a wider range of deals, but you may
need to pay them to provide this advice. However, this is often
a worthwhile investment, as commission earnings do not influence
the advisor, so the mortgage is more likely to meet your requirements.
Get On The
Net
A search on
Google will generate a list of hundreds of UK mortgage providers
to choose from. Many will have online mortgage calculators, to give
you an idea of your repayments.
Alternatively
you can use financial comparison sites, such as MoneySupermarket.com
to do the work for you. Simply enter your requirements and let the
comparison site search hundreds of providers to provide you with
the best deals.
Don't Always
Depend On The Rate
Don't always
assume that a low interest rate makes a cheap mortgage. Providers
often use low rate deals to attract new customers, however you may
end up paying more money in the long-term.
Check the small
print of the mortgage and find out if you will be penalised financially
for opting out of the deal early or if there are any hidden costs.
Further Help
For First Time Buyers
For more information
on buying your first home, take a look at our first
time buyer's guide.
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