Mortgages: Applying For A Mortgage

So, you've found out about interest rates, costs and stamp duty and you still want to buy that house? OK, well unless you're very wealthy you'll need a mortgage. The trouble is, there are thousands of mortgages on the market how will you find the right one for you?

Well first of all, start taking a look at what's out there. Try using a comparison tool such as the one available online, right here at the Fool. Take a look at the current rates available for each different type of mortgage (fixed, discounted, tracker etc) and get a feel for the differences between them. You should have already worked out how much you would be able to borrow by using the Fool's mortgage calculator and got a rough idea about how much you'll need to spend on fees.

Brokers

Now, once you've done all of this, it's time to start thinking about applying for a mortgage. Of course, with the thousands of mortgage products out there, you may feel like it's a bit of a minefield. For this reason, a mortgage broker could be the answer they can trawl through all of these deals and find the one that suits your needs best. What's more, brokers often are privy to deals that the general public never hear about, so you could save a fortune in money, as well as time. However, it's obviously worth trying to find one that's free (and gets its commission from the lenders, not you!). Luckily, you don't have to go very far as Fool partner London & Country Mortgage Brokers offers a no-fee, comprehensive mortgage advice through its free phone service.

Word of warning: Before getting in touch with a mortgage broker, make sure you have as much information as possible at your fingertips. This means exact salary details for you and your partner, when bonuses are paid, details of any loans/mortgages already held etc. as it will be required for their searches.

Once you've found the mortgage that suits you best, you can either apply through your broker, or to the lender directly. Your broker/lender will usually then post out some forms detailing the loan and your details, which you'll have to check and sign. You should aim to do this quickly as lenders state time period during which they will guarantee the rate you have been quoted, meaning you won't be affected should interest rates rise. It will then be a case of waiting to see if the mortgage is approved, and then you can go ahead and start the house-buying ball rolling!

Next article: Help For First-Time Buyers

Published on November 22, 2006