How to compare mortgages - Most of us have heard of the saying, "compare apples with apples" and this is so true about mortgages. The difficulty for the majority is carrying out such a seemingly daunting task. But have no fear as I will reveal a simple method to help you to compare mortgages.
Apples with apples - What is meant by "apples with apples" is to sort the same type of mortgages into groups over the same term. Don't try and compare a fixed rate with SVR for example. Don't compare a mortgage with payments over 15 years to that with a payment term of 25 years. Do you get the picture?
Don't take your eye off the overall cost - You must realise that in any type of sale let alone a mortgage deal that the salesperson is going to highlight what they themselves want you to know. This is totally different to what you may need to know. The very best way to compare mortgages is to look at the overall cost to you once any hidden fees and commissions are added.
Think, "What's in it for them?" - Without sounding too cynical you need to be thinking along the lines of "What's in it for them?" when dealing with mortgage lenders and brokers. They will only point out the good points for them and try to hide what is not so good for you. Of course the FSA have made sure it will all be spelt out in the final documents but you need to know at the time of discussion what it's going to cost you when you compare mortgages.
What's in it for you? - It may be obvious to most to ask yourself, "What's in it for me?" However, it would surprise you how many mortgage lenders and brokers can talk you into something like a remortgage or loan where the benefits to you are little to say the least. In other words weigh up the pros and cons before taking the almighty leap of taking out a new mortgage or any form of loan.
Decide in haste - repent at leisure - How many times have you made a purchase or signed an agreement then had second thoughts. Firstly, don't rush to sign any form of agreement without considering all the "downsides" (as for sure you would have only been sold the "upsides".) Secondly when you come to compare mortgages and feel you want to repent, remember that you have a 10 day cooling off period when you can cancel the agreement without incurring any cost whatsoever.
At last something for free - This article serves only as a little knowledge about this specific subject how to compare mortgages but you can download my book The Mortgage Bible (it’s free for a short while) which will arm you with almost everything you need to know about mortgages. The book is not just a freebie it shows you how you can get the best mortgage deals saving you thousands of pounds and you'll learn other ways how to compare mortgages.
