How to choose a mortgage provider
Choosing the right new build mortgage provider is important for a stress-free home buying experience.
1. Consider your needs and budget
Before diving into specifics and comparing lenders, start with a clear position of your current financial situation. A clear understanding of your income, credit score and desired deposit will help you find suitable mortgage products.
Lenders assess several factors including:
- Your income and outgoings
- Your credit score
- Your savings and deposit size
- Your existing debts or commitments
Checking your credit score early allows you to identify any issues and improve your eligibility before you begin your application. You can find a range of free credit score services online which allows you to check your credit score and identify any areas for improvement.
2. Explore different mortgage options
Understanding the main types of mortgage options will help you decide which suits your lifestyle and long-term plans best. Here is a breakdown of some popular choices:
- Fixed-rate mortgages: Your interest rate is locked in for a set period, giving you predictable monthly payments.
- Standard variable rate (SVR) mortgages: Monthly payments may vary, but rates can sometimes start lower than fixed deals.
- Tracker mortgages: Like a standard variable rate mortgage, but follows external rates, and not those of the provider.
- Guarantor mortgage: Not strictly a mortgage type but having a guarantor can help buyers who need additional support to secure an offer.
3. Think about using a mortgage advisor
A mortgage advisor can search the market on your behalf and recommend the best deal based on your circumstances. They can also improve your chances of being accepted for a mortgage, as well as save you time and legwork. But don’t forget to ask about their fees!
4. Compare mortgage rates
Once you have an idea of what you’re looking for, get quotes from at least three lenders, including banks, building societies, online mortgage lenders, and credit union. You should compare factors like:
- Interest rates: Lower rates usually mean lower monthly payments.
- Annual Percentage Rate (APR): Considers interest, arrangement fees and other costs. It’s the best way to compare the total cost of borrowing.
- Fees and closing costs: These one-off costs vary significantly between lenders and should be factored into your budget.
5. Choose a mortgage lender you trust
The right mortgage provider can make the entire homebuying experience smoother and less stressful. Beyond mortgage rates, also consider the lender’s customer service reputation and communication style.
Bonus tip: Get pre-approved
Getting a mortgage-in-principle strengthens your offer when purchasing a Tilia home. It shows us that you’re a serious buyer with a verified loan amount.
Looking to buy a Tilia home?
At Tilia Homes, we want to ensure a positive homebuying experience for every customer.
If you are looking for a reputable mortgage lender who can streamline the buying process, you can speak to our helpful team by getting in touch here.
Alternatively, if you’re a first-time buyer looking for more information on how to secure your first, new home mortgage, you can explore our full guide to first-time buyer mortgages here.