Mortgages In Detail

When taking out a mortgage

What are the things you should look out for when taking out a mortgage?

Fees

Some lenders will charge you for arrangement of the mortgage, for having a price survey done on the property and possibly other expenses. You can find lenders though that will pay these fees for you. It is worth noting however that the money saved here can easily be wiped out by even a slightly higher interest rate, so take time to work it out.

Mortgage Payment Protection Insurance

This is where the lender charges you to protect themselves against you not making your payments. If you feel you would like to take this sort of protection, it is normally much cheaper to buy it with someone other than your lender – watch out if the small print says you must buy it from them.

Cashback

This is where the lender will give you an amount of cash when you take out your mortgage. If you are likely to need some cash to furnish your new property or pay legal fees, this may be worth taking into account.

Redemption Penalties

If you plan on possibly moving your mortgage to another lender in the near future, you should definitely look out for any early repayment penalties – known as redemption penalties.

Lump sum repayments

It is worth checking if you are able to make any lump sum repayments to reduce the amount of the debt. If you think you might want to do this in the future, check whether you can do this, and if it has any costs.

During the Mortgage Term

Re-Mortgaging

It is always worth keeping an eye on the amount you are paying each month, and how much you could be saving by moving to another mortgage deal. Hopefully you will have a mortgage without redemption penalties, so you could be saving your self thousands of pounds by taking the time to move your mortgage to another lender.