Which mortgage is right for you

By the Beresfords Marketing Team - 13th May 2015

Choosing a mortgage can be a minefield. Do you go with a bank or building society? What length of mortgage term should you opt for? What’s the difference between standard variable and fixed rate mortgages? Are you eligible for Help to Buy or other buyer schemes?

The introduction of the Mortgage Market Review has also moved the goals posts when it comes to affordability and how much you can borrow, so even homeowners who have dealt with the mortgage market for years will find the landscape has changed significantly.

At Beresfords, we have live mortgage tables on our website, so buyers can get a quick overview of the best mortgage products currently available, but there’s no such thing as “one size fits all” when it comes to mortgages. That’s why we always recommend you seek independent advice before you sign on the dotted line.

Banks can only offer mortgages that they provide, so homebuyers should make their first port of call a fully qualified independent mortgage adviser, such as those at Flagstone Financial, Beresfords mortgage partner.

As a large mortgage introducer Flagstone has access to some of the best mortgage products, which are not available to the general public. As an independent company, they can also search for a tailor-made products to suit each customer’s individual needs. With hundreds of products on the market it is very difficult to know what type will suit your financial circumstances and also the property you are buying.

For example: if you are a first time buyer with a small deposit and high Loan To Value (LTV) who is buying a property which needs work, it might make more financial sense for you to have a two year fixed mortgage at a lower rate. That way you will have more disposable income to do the work and can re-mortgage in a couple of years once you’ve improved the value of the property – benefitting from a lower LTV and potentially a better mortgage rate.

John Lineham, the Director of Flagstone with 23 years of experience in the mortgage market, comments: “In the last few months we have seen a new range of products coming onto the market, including some of the lowest rates for years and also the return of 10 year fixed rates, so as a consumer it is extremely difficult to know what is right for you. While we now have the certainty of a majority government for the next five years, we do not know what is going to happen to interest rates or the wider economy, so making a well-informed decision on your mortgage is vitally important.”