Four Pieces of Poor Loughton Mortgage 'Advice'

If you are looking for a new home and have been talking about it to friends and family, you may have received various pieces of advice about getting a mortgage. Unfortunately, there is a lot of poor advice that people offer, which you must avoid. 

This article will discuss four mortgage-based advice that you must take with a pinch of salt. 

#1: Only Get A Mortgage From Your Bank 

You may have heard the advice that you must only opt for a bank you frequently use to get a mortgage. Several people think that you can enjoy several advantages if you go to a large bank with which you have a history. 

Unfortunately, this is not true. Instead, find a mortgage broker who offers all the products that align with your current and future financial needs. 

#2: Always Take The Lowest Interest Rate 

Next, people often recommend finding a mortgage product with the lowest interest rate. However, the exact rates rely on several parameters. 

When you opt for the lowest rate, you may end up missing out on a few favourable mortgage terms. Hence, always seek the assistance of your mortgage broker, so you understand your alternatives. 

Note that, over time, you can learn to refinance your mortgage in case the rates steer in a promising direction for you. This way, you can feel safe when you pick the right mortgage right now. 

#3: Always Borrow As Much As You Can 

The following mortgage advice that you may have received involves borrowing as much as you can. However, a mortgage is a loan, and you are required to pay it back. The amount that you end up borrowing has to align with your requirements. 

#4: Don't Bother With An Agreement In Principle (AIP) 

Lastly, people may have asked you to avoid the mortgage AIP process. Although you may find an opportunity to do so, this is a bad idea. 

Several home sellers would need evidence of your pre-approval before they are ready to commit to selling their home. 

If several other people are bidding on a home, those with their finances in order will most likely bag the house. Thus, if and when you are ready, go for an AIP. 

Need 1-2-1 advice, our mortgage partners are ready to help - Call today on 07951 020200