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MBA Urges Regulators To Avoid Invoking Suitability Standards
The Mortgage Bankers Association (MBA) recently made a preemptive strike against what it obviously perceives as the next threat against the mortgage industry - "suitability standards." Read more...

 

Finding The Best Mortgage Deals

Most people own their home with a mortgage, the longest financial commitment you will ever make, typically extending over 25 years of your life. However, the mortgage maze has never been more complicated because over the past five years, the market has undergone a massive transformation - new players have taken their place on the financial scene and new types of mortgage present an increasing choice for home loan-seekers. Thankfully, the day when hopeful borrowers had to queue outside a local building society for a loan are long gone. But in place of queues there is now almost a mortgage glut as banks, insurance companies, so-called centralized lenders and other personal finance players are all vying for your business and offering a wide range of loan schemes.

Add a thriving remortgage market and it is no surprise that many people see finding best mortgage rates a daunting process. Yet do not despair - obtaining the best mortgage rates is possible provided that you follow a few basic steps. Once your chosen lender has valued your ideal and checked out your means, it will make a best mortgage rates offer which will probably be no higher than three or four times your income plus the value of a partner's income.

That leaves you to pay the deposit, which should be at least 10% of the property value, otherwise the lender is likely to penalize you by charging an additional lending fee to cover its risk. If you can pay 25% or more of the value you are more likely to secure a good deal, but beware of any hidden charges that might cancel out the best mortgage rates you found. Best mortgage rates for a lender's property valuation, non-returnable booking fees for limited-offer products, arrangement fees on fixed and capped-rate mortgages and administrative charges for checking your insurance cover are not uncommon.

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