Mortgage Lenders – Your Options
Finding your dream home is usually the simplest part of the
house buying process! Once you see somewhere you want to put in an offer for,
you’ll want to move fast. It helps, therefore, to have your mortgage sorted
before you find somewhere you want to buy.
You can choose a lender and mortgage, apply for the loan and
get your mortgage ‘approved on principle’ before you even start looking for a
house. This means that you know what your budget will be and can be fairly
certain that your mortgage will be accepted. The lender will still want to see
the valuation survey, however, and there may be other checks that have to be
completed before the deal is closed.
While most people used to take out their mortgage with a
building society or bank, these days there are a number of other options to
consider. Smaller, specialist mortgage providers can offer good deals and are
sometimes more flexible about terms.
Banks and Building Societies
Since the market has become much more competitive, the
larger finance houses have adapted their practice to become much more flexible
with their mortgage deals. You will have the advantage of knowing that a
reputable lender provides your mortgage, and local branches can make your
day-to-day banking more convenient.
Insurance Companies
Some companies now offer their own range of mortgage
products, which can give good terms, along with insurance products and
investments. Legal and General are a well-known example. Check that you are not
committed to taking out insurance policies with the lender along with your
mortgage.
Specialist and Centralised Lenders
Generally this type of lender operates from one location –
you won’t be able to visit a local branch, but they may offer lower rates as a
result of having fewer overheads to cover. Virgin Direct and Mortgage Trust are
two lenders who can offer particularly flexible mortgages. Telephone and
internet banking make this kind of borrowing more convenient.
Local authorities
Council house residents may wish to apply to their local
authority for a mortgage. There are also some mortgages available from some
authorities for people who wish to renovate derelict houses – contact your
local council for more information.
It’s good practise for a lender to subscribe to the Mortgage
Code – this is a voluntary scheme that means the lender has promised to uphold
commitments to good service.Read more for detail information.