Choosing the best deal

It is vital that you get independent mortgage advise before making any rash decisions because your circumstances and how you feel about any risks will affect which type of mortgage is the best deal for you.  But before doing ant of this, it is helpful to read and consider the following points: -

1. Whether you prefer to budget for fixed payments each month, rather than payments, which can vary over the years.

2. Whether or when your income is likely to change.

3. Whether you could cope with a big rise in you monthly payments after the end of a special deal.

4. Whether you are prepared to shop around and switch mortgage every few years as each special deal ends.

5. Whether you’re likely to need flexibility, to pay off lump sums or take a payment holiday for example.

6. What you feel about penalty clauses that mean you’ll be charged a fee if you switch to a different mortgage.

7. Whether keeping costs down in the short term is more important than overall cost in the long term.

As long as you ponder hard over these scenarios and plan for the long term, you shouldn’t go wrong.