A recent survey by the Resolution Foundation had found that people on medium to low income are 40% less likely to consult an independent financial adviser or a mortgage broker than people on high income. Taking this into account the popularity of comparison sites, which cover many financial products including mortgages, should be welcomed. Indeed, research showed that these sites achieve high levels of market coverage, enabling consumers to readily access a wealth of information on a wide range of products.
Whilst I am a little biased on the subject, I think that comparison sites can be a good first step in your re-mortgage research. To help you do your research well, here are things to consider:
- Choose the right mortgage deal for you first, there are a number of mortgage types in the market but essentially the rate is either fixed for a period or variable. You can read more about the types of mortgages available here. Once you chose your type, make sure you compare mortgages of this type only or you will get an inaccurate comparison.
- Work out your deposit, there is a big difference between the mortgage deals available with 25% deposit compared with only 5%. There is no point wasting time reviewing mortgages you don’t qualify for.
- Make sure you use the right website, since comparison sites are very popular there are a great number of them to choose from. Make sure that you choose the ones who compare the whole market and not a number of lenders only.
- Consider your circumstances, if you are self-employed, have a lot of debt or poor credit history you may not qualify for many of the products on offer. It may be a better use of your time to speak with a broker from the onset rather than getting frustrated with a fruitless online search.
- Make sure you review the details, read the details of what’s on offer and consider the details beyond the rate. Things like the mortgage fee, early payment fee, valuation and legal fees can make a big difference to your pocket so make sure you take them into account.
Once you have done your initial research and improved your understanding of what is available to you, I recommend talking to a mortgage broker before you make the final decision. The Broker can verify your understanding and provide you with options from their own research for comparison.
I hope this has given you a better understanding and will help you research better next time you are looking to re-mortgage. Should you want some advice or more information, please get in touch to arrange an initial appointment at a place and time to suit your busy schedule.
Your property may be repossessed if you do not keep up repayments on your mortgage.