A brief search for mortgages online will present you with hundreds of links and a plethora of adverts. It’s always beneficial for consumers to have a choice, but how do you go about finding the right mortgage? In this useful guide, we’ll explore some essential factors to consider when narrowing down your options. 



Your credit score


Credit scores are an indicator used by lenders to determine the level of risk you present. Everybody has a credit score. The higher the figure, the better. If you are looking to take out a mortgage, a high credit score will provide access to lower interest rates and increase your chances of having a mortgage application approved. If you have a low score, this doesn’t mean that you cannot get a mortgage. You may be able to borrow money, but it will cost you more, as interest rates will be higher. If you are planning to buy in the future, it is worth trying to improve your credit rating before you apply for a mortgage. You can do this by clearing debts, making sure you pay off bills or repayments on time and reducing your debt to income ratio. 


Your age


Age is not always a factor, but it is an important consideration if you are thinking about mortgage options, such as a retirement interest only mortgage, or you are applying for a mortgage for the first time. It’s hugely beneficial to spend time researching different mortgages and exploring options that may be available to you that aren’t accessible to all buyers. Interest only mortgages are loans that are secured against the home and they are available for over 55s. With this type of mortgage, the monthly payment covers the interest, which means that the total amount owed doesn’t increase. The balance of the loan is paid when the last borrower on the mortgage either dies or moves into care. 


Your deposit


The amount of money you can put down on a house will impact the options open to you. If you have a large deposit or downpayment, this means that you will need to borrow less. The rate will be relative to the value of the house and the deposit. If you only need to borrow 50% of the value, rather than 90%, for example, you should be able to access preferential rates. 



Lender reputation


There are hundreds of lenders in the world. Many consumers have a preference in terms of the lender they choose. When researching mortgages, always use reputable websites and comparison apps and research companies extensively. Learn more about banks and other lenders, compare quotes, read the small print and make sure the mortgage you apply for comes from an approved lender. 

Finding a mortgage can be a minefield because there is so much choice available. If you are looking for a mortgage, it’s essential to tailor your search to suit your requirements and your preferences. There is no universal product that is ideally suited to every prospective buyer. Consider your age, your credit score and the amount of money you can put down and take time to research lenders and compare offers.  


(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)