Finding the best current mortgage deal can be tricky. Lenders are strict on lending criteria and in most cases a hefty deposit is required. However there are things you can do to ensure you get approved and are able to find the best current mortgage deals.

How to find the best current mortgage deals?

Before applying for a mortgage check out your credit report online. Many companies like Experian and Equifax run promotions where you can obtain your report for free. By doing this you can see if there are any discrepancies which may affect your ability to obtain a mortgage.

If you see a deal with a low rate it may have a high arrangement fee, typically these can range from £1,000 to £2,500. Some of the cheapest mortgage deals also advertise very low rates for marketing purposes so they can get you through the door. Make sure you take into account all associated costs over the entire term before making your mind up. This includes charges for additional payments and switching lenders.

Researching and comparing current mortgage deals on Buyability is very easy all you have to do is fill out a short form and you can compare the best current mortgage deals. Using our comparison tool will save you time and money.

Mortgage lenders currently give the best deals to people who put down large deposits. If you really want to secure a great deal put as much down as possible.

In some cases current mortgage deals offer tied in products. This could include buildings or mortgage protection insurance in return for low rates. In this situation look at the associated costs, you could end up paying more and being tied into an agreement which is not financially beneficial.

Fixed, Trackers and Discounted Mortgages

Fixed Rate Mortgage – Payments are fixed for a set amount of time

Tracker Mortgages – The amount you pay back each month is tied to the Bank of England’s base rate.

Discounted Mortgages – The mortgage lender will provide a discount on their standard variable rate for a set amount of time usually two years and then usually increase it after the agreed time expires.

Standard Variable Rate Mortgage – The amount you pay back each month will fluctuate in line with the lenders own standard rate.

Find the best current mortgage deals

When you are looking at current mortgage deals you have a choice between repayment and interest only. A repayment mortgage means you pay back the capital borrowed as well as the interest. As a result at the end of the term of the mortgage you should have paid back the total amount borrowed. In contrast and as the name suggests an interest only mortgage means you only pay back the interest and not the capital borrowed.

It is quite common for first time buyers to take out an interest only mortgage for the first to two years and convert to a repayment mortgage later to initially keep payments low. Also lots of homeowners who take out an interest only also pay money into a savings or investment plan, which is may be connected to their mortgages so they can hopefully use the money earned to pay off a large proportion of the mortgage at a later date.   

In these uncertain times people like to feel financially secure, which is why fixed rate mortgages are currently so popular. There is uncertainty in the economy at the moment so it is not totally clear where interest rates will go. If you are not fazed by this sort of risk and are looking for a current mortgage deal you can obtain a low rate tracker. However whenever you take out a mortgage you should think mid to long term and be aware that should you miss any payments your house may be at risk.

The best way to start looking for a mortgage is to use our comparison tool so you can compare the best mortgage deals.