Arranging a mortgage
The mortgage business is getting more complicated all the time but that’s good news, because there’s more choice.
Chances are, though, that you’ve already progressed this a little. You probably know how much you can afford, based on the deposit you already have and roughly how much you’ll be able to borrow. (If you haven’t got some idea of this, you could be looking at all the wrong properties. So find out early on what your limits are.) Remember, though, that you’ll probably need furniture and stuff, so don’t push the figure too high. It’s best to stay within a comfort zone that lets you enjoy your new home rather than just sit on the floor in it.
There are some useful mortgage calculators that will provide guidelines (the BBC homes website, for example, has one). These might be useful as a yardstick when choosing your mortgage provider. You might also ask for advice from an Independent Financial Adviser.
You may already have a good relationship with your bank or building society, and ask them to provide a quote, or you may be attracted by ads, or you may want take advice from an expert. If you’re bewildered, your Sales Adviser may be able to suggest some people who can help. Whichever route you take, there are a some essential points to remember.
Independent Financial Advisers
If you want to take advice from an IFA, check in advance whether they will be charging you a fee or taking a commission from the mortgage provider you choose. Find out whether they linked to a particular company or are free to offer products from several providers. This will enable you to evaluate the advice they give you. And, like any professional service, they’re not all the same. If you can, find a recommendation from someone whose opinion you trust.
Your lender will have your new home surveyed to make sure it is worth at least as much as the mortgage they offer you, and they will charge you for having this done. The figure they give will not necessarily be the same as the market value. For example, it may not include some of the fittings and premium finishes. This is perfectly usual.
Types of mortgage
If you’re making comparisons, make sure you’re comparing like with like. Figures for a standard repayment mortgage, where the capital is being gradually repaid, will look different from an interest-only mortgage like endowment or savings-linked type. Different types have different advantages. Make sure you get the one that suits you.
Until we complete the sale, your home is insured by Miller Homes. Your mortgage provider will insist that you insure it from that point on, and tell you how much it should be covered for. They may suggest an insurer themselves as part of the mortgage deal, but remember you are free to shop around for the best deal you can find.
We strongly recommend that you insure your home contents too. This will be a separate policy and can be arranged with a different insurer, but you may get a good deal by using the same provider for both policies.