Your goal is to find the cheapest, most efficient mortgage possible. Unfortunately, this isn’t always just a case of finding the cheapest rate on the market, because you might not fit their eligibility criteria.
You may also be limited in your options depending on who you bank with, for example, because some banks only offer certain mortgage deals to people who are already customers with them.
Mortgage comparison websites
That said, searching online for the cheapest rates is still a good place to start, and mortgage comparison sites have proven themselves to be very useful. They can show you the market for buy-to-let mortgages, making it easier for you to find the most suitable loan.
However, ensure you use multiple comparison websites, because not every site shows every mortgage deal. You might only be able to get some deals directly from the lender, and some sites could have exclusive deals.
It can take a while to search through the many mortgage products available, but it’s definitely worth doing.
Find a good mortgage broker
Mortgage brokers are independent companies that are free from ties to lenders. This allows them to provide you with impartial advice on which is the best mortgage product for you, and also process the details of your application.
Using a mortgage broker saves you time and also reduces the risk of mistakes being made in the application, because they are more familiar with it all. You can reject their advice if your own research disagrees with what they are saying, but this isn’t usually recommended.
The majority of big lenders offer buy-to-let mortgages, but you might find that specialist lenders offer market-leading rates solely to people going through mortgage brokers.
Regardless of who you have as a mortgage broker, you should ask for a list of all their fees upfront, and ensure they are regulated by the Financial Conduct Authority (FCA). Find out if they compare every lender, to ensure you don’t miss out on the best deal.
It’s recommended to not make any payments until you have secured a mortgage, so avoid arranging an upfront payment with the broker.
Mortgage brokers don’t just help you find the best deal; if the mortgage product you choose ends up being a poor choice, you could potentially claim mis-selling or complain to the Financial Ombudsman, if you followed the advice of a mortgage broker.
Equity Loan Mortgage Calculator
Whether you're a first-time buyer or already a property owner you could buy a new home with a small deposit of 5%, heres how.
How Help to Buy Equity Loans Work
- First time buyers and those already on the property ladder can apply.
- To qualify a 5% deposit is required.
- A 75% mortgage must be secured from your bank or building society.
- The remaining 20% of the property’s value is funded by an equity loan provided by the Government.
- House prices can’t be more than £600,000 in England and £300,000 in Wales.