Shop around for a Mortgage
In the recent years we have heard this term “Shopping around for a Mortgage”. Why do we need to shop around and is there really a need to do this.
Yes this is more of a necessity, it is more to do with what rates are offered and what rates would suit your circumstances. I get asked almost every time by my clients whether should they fix short term or long term. In order to guide my clients to make an informed decision I would ask them to consider the following key facts,
1. Duration of the loan: If clients are planning on holding on to the property for long term and want a degree of certainty it will be beneficial to fix it for long term. On the other hand if clients are looking at upgrading or downsizing their property in a short period of time then a
short term rate will be beneficial for them.
2. Pay off loan faster: The short term loans offer lower interest rates. Lower interest rates mean better cash flow and it gives an opportunity for clients to pay their loans faster while they are on low fixed rates.
3. Stability: Fixing a loan for 5 years and not to worry about the wide interest rate variations happening at the bank. This is preferably for clients who want peace of mind and stability for the next few years.
Here at Loanmarket we have a wide network of lenders who compete for our business. So why not take advantage of this and get offers from various lenders and negotiate the best offer that would suit your need. For first home buyers once you have found a property it would be an important exercise for you to choose the right interest rate that would fit the right repayment.
P.S This advice is of general nature and not intended to be taken as individual advice.