getting the best deal
sIf you are looking for a new mortgage or to
re-mortgage, you will want to source the cheapest and most flexible
deal for your circumstances. There are a number of ways to go about
this.
Negotiating with your current lender (for
remortgaging)
Although lender loyalty is less prevalent
nowadays, you may want to check out what your current lender will
offer you before you decide to remortgage.
It could be that, if you have been a reliable
customer, have a relatively large mortgage which represents a
small loan to value (LTV), your lender may be willing to pull some
strings to retain your valuable business. However, flexibility
varies from lender to lender and in most cases, you should not
expect negotiations to be successful.
But it’s worth a go as some lenders, such as
Abbey, take a very flexible view on remortgaging and will go
considerable lengths to retain your custom.
Using a financial adviser
Since November 2004, mortgages and mortgage
advisers have been regulated by the Financial Services Authority
(FSA). Financial advisers have since been split into three
categories:
- tied advisers, who give advice only on mortgage products of the
lender they work for;
- multi-tied advisers who give advice on mortgage products
offered by a limited range of lenders; and
- independent financial advisers (commonly known as IFAs) who
must give totally impartial advice and make recommendations from
the entire market. According to the IFA directory, IFA Promotions,
30 per cent of all remortgagers use the IFA route.
- Researching online. The difference between today and the
last time you may have looked for a mortgage is that you can now do
all the legwork online. There are several broker sites that will
scour the mortgage market on your behalf, once you have input your
borrowing requirements and your financial status.
- Check out Defaqto’s best buy tables elsewhere in this
section, but for full advice, you need to consult an IFA who
specialises in mortgages.