Ah, mortgages...a minefield that a lot of people try not to get too involved with; there are many questions however that you will want answering when considering taking out a mortgage; here are some of the more common ones:
How do I know whether or not it is the right time to take out a mortgage?
You want to wait for a time when interest rates in the property market are favourable which is when they are low. This may not be an easy thing for the layman to know which is why it is best to consult a finance or mortgage advisor.
What is a fixed rate mortgage?
There are two types of mortgages that you can take out: one that has a flexible interest rate which means that the lender can change the rate at any time, and one with a fixed interest rate. In the case of the second one, you will pay the same interest rate for the duration of the mortgage. A fixed rate mortgage may not be such a great thing if interest rates drop.
How do I know which lender is best?
Choosing a lender can be quite confusing – there are so many of them and they are all advertising to get clients. The best lender is one who gives you an interest rate that you can afford and terms that you are comfortable with. You may need to look at quite a few lenders before you can decide. Again, hiring a mortgage consultant can help you a great deal here.
How long will my mortgage last?
That depends on the agreed terms. A typical mortgage will last between 20 and 30 years. If you come into additional money that you can pay the lender then the mortgage will be paid off in a shorter time, but be careful because there are penalties associated with early payment.
What can make my mortgage application be rejected?
The most common reason why a mortgage application is rejected is bad credit. If the lender sees that you have outstanding debt they will be reluctant to give you a mortgage. Also, your application can be rejected if the lender feels that you don’t have sufficient income for the amount of mortgage that you are applying for.
How much can I borrow?
This can vary depending on the lender but typically, you can get to three times your salary.
The best person to answer your mortgage questions if you are from Nottingham is go to Mortgage Advice Services. They know all about mortgages and they can help you get the best one. You can see more on their website, http://www.mortgageadviceservices.co.uk/Labels: expert mortgage advice, mortgage FAQ's, mortgage questions, re-mortgage advice, time to remortgage
