Ways To Get The Most Out Of Your Property Mortgage

Almost everyone wants property mortgage that offers low interest rates, is available over a long tenure and that they can afford. If you are about to get a mortgage, make sure to consult an expert. There are dedicated sites that offer you mortgage advice such as tips to get the best deals and calculating rates online. Here are some ways to extract the best deal from your mortgage.

Interest Rate

The interest rate on the mortgage is the first thing people will look at. The interest rate will determine the extent of your premiums each month. Interest rates can be classified as fixed or variable. Variable interest rates fluctuate based on market conditions and your premium amounts will also vary according to the market. Thus, expect to pay higher premiums in the case of higher rates in the market and vice versa. The advantage of variable rates is that you can leverage low interest rates and hence low premiums based on market conditions. In contrast, fixed interest rates imply that your premium amount will not change. The advantage of a fixed rate is that your premium amounts will be predictable and hence it aids in financial planning. Most experts suggest that opting for fixed rates on your property mortgage can help in budgeting and expenses.


Mortgage protection is a valuable investment should there be a debilitating illness, loss of employment or income. Any situation that can result in an inability to repay your mortgage qualifies for mortgage protection. Buying such coverage can help you claim for compensation should you be unable to pay your mortgage. Amongst all the mortgage advice, this is the most important because it safeguards your finances in case of crisis.


Knowing the type of mortgage salesperson to choose when opting for property mortgage is also critical. High street lending agents only offer mortgages provided by that company and the service provided is based on information only and not advice. There are brokers who have extensive networks and know the best mortgage deals available in the market. Several brokers do not charge extra fees for providing you mortgage advice. Some brokers charge fixed fees while others charge a certain percentage of the mortgage as commission. There are also brokers who will not charge anything since they receive commissions from their lending institution. These brokers are therefore not independent.

For persons who are getting property mortgage for the first time, hiring a broker is a good idea. Mortgage brokers provide valuable advice on the best deals and also navigate through the paperwork and documentation formalities required as part of the application. Certain brokers have access to best buy type mortgages, which cannot be obtained anywhere else.

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