Ten facts to help you get the best mortgage

No matter whether it will be your first mortgage or you are remortgaging, some knowledge is necessary to have a successful deal. Here we present some facts about the world of prices and mortgages nowadays.

1. Halifax says the average cost for a home in the UK is now about 204,552. In the US, this stands at around 261,947.25 dollars.

2. According to the Mortgage Advice Bureau, the prices for houses have risen by 9% in a year, with a mortgage rise of 4% across the globe. The average application for a mortgage this year, including the rise, is 167,842 (214936.79 USD.)

3. The MAB also says that the average deposit this year is 71,301 (91307.35 USD), which means people have more opportunities to have a better remortgage deal.

4. Which? reports that the average person buying real estate for the first time puts down a 17% deposit. At the average house price of 204,552 (261947.25 USD), that means you need to save up to about 35,000 (44820.65 USD).

5. On top of that, you’ll need a further 12,000 (15367.08 USD) to cover the cost of moving, according to Post Office Money. “Potential homebuyers should set aside savings specifically for these costs,” says John Willcock, head of mortgages at Post Office Money.

6. The number of people with interest-only mortgages is steadily declining. They are much harder to get hold of now, and if you do apply for one you will have to prove you have a strategy in place to repay it.

7. Mortgage rates continue to sit at historic lows, with deals available that charge as little as 1.14 per cent interest. Many experts predict that interest rates will start to climb at some point this year, so it could pay to lock in a low rate now. Fixed rates are proving increasingly popular as homeowners try to protect themselves from rate shocks.

8.A poor credit history and affordability problems are the two most likely reasons for your mortgage application being rejected, say the experts. So, be honest about your spending. If you find yourself facing challenges due to bad credit, seeking assistance from a bad credit mortgage broker can be instrumental in navigating the complexities of securing a mortgage. These professionals specialize in helping individuals with less-than-ideal credit histories find suitable mortgage options. “Getting the monthly budgeting figures down correctly will really help an adviser get to grips with affordability criteria,” says David Hollingworth, a mortgage broker at London & Country Mortgages.

9. Mortgage terms are getting longer. Traditionally, new mortgages are taken out over a 25-year term but more than a fifth of homeowners seem to be now searching for a 30-year or a 40-year mortgage. Remember, however, that a longer term means the amount of interest you pay will rise significantly.

10. Mortgage lending was at a seven-year high in November, according to figures from the British Bankers’ Association. There were 44,960 mortgage approvals, with a total value of 7.9 billion, made to homebuyers in the month.

Hopefully, these pieces of information have helped all the readers to map the best possible route to find a mortgage. Those who want to learn more on this subject matter can consider conducting online searches for the same.