How do I know I have the best mortgage deal available to me?
Interest rates are at an all time low so everyone is paying a lot less interest on their mortgage than they were 8-10 years ago. We have all got used to borrowing money relatively cheaply. Interest rates are predicted to start rising. The question now is “when” rather than “if” they will rise. A lot of us have become lazy about securing the very best mortgage deal. This is because even the most expensive deals today are still good value compared to previous years.
So what do we do to make sure that we have the very best deal that we can?
Use a broker. Look up your nearest on www.unbiased.co.uk. Speak to 2 or 3 to get a feel for whether they “know their stuff”. Most mortgage brokers and IFAs will have access to a range of lenders. You can check this by asking them if they are “Whole of Market”. They will take your basic requirements and source the best deal available that fits your requirements.
Be prepared to pay a fee to find out. On this occasion the broker’s job is to source the best deal. This includes “Direct to Lender” deals. The broker will know about these deals but you will have to do the legwork. This is because certain deals/lenders will only deal directly with the public rather than through an intermediary. Agree the sourcing fee upfront.
You will get one of three possible outcomes:
There is a better deal out there that is a “direct” deal so you can go and sort it out yourself. YOU WIN.
There is a better deal out there that can be secured through the broker. He sorts it out for you. YOU WIN.
There isn’t a better deal out there (or at least not one that it is worth moving to). In this case you have the peace of mind of knowing that you have the best deal. You are staying put as an active choice rather than because of inertia. YOU WIN.
Remember that the broker’s job is to help you make an informed choice. Knowledge is power!! What you do with the information is down to you.