Take a Strategic Approach to Choosing a High Value Mortgage
Mortgages of £800,000 or more are nothing unusual in today’s market. But choose wisely, as the decisions you make will be with you for years.
Interest rates are remaining low and property prices are starting to level out. In fact, they are even dropping in London and some other locations, largely thanks to Brexit uncertainty. As such, many people are deciding this is the ideal time to take the plunge with a large mortgage and climb a couple of rungs up the property ladder while the going is good.
Strategically, it is not a bad call. The phrase “Brexit uncertainty” seems to have been influencing our thinking forever, but for better or worse, it will all come to a head in a few weeks’ time. Invariably, it is the uncertainty that has the biggest impact on economic factors, and once the UK has actually stepped away from the EU, that uncertainty will end. As such, there is certainly some logic to the idea that there will never be a better time for house hunters to go shopping for 800,000 pound mortgages and to secure the properties they always wanted.
This is the age of choice, and price comparison websites make the act of shopping around second nature to us. But while those might be great for getting a good deal on car insurance, it pays to speak to a specialist when it comes to large mortgages.
By all means see what the online sites have to offer, but by sitting down with a specialist broker who deals with large mortgages, you will be surprised at just how many other options open up to you. They will go into your personal circumstances in some detail and will help find a deal that is tailored to you in a way that is simply not possible using online bots.
That’s particularly important if your circumstances are a little out of the ordinary, for example if you are self-employed or you have a less-than-perfect credit history. These days, there are more people than ever falling into these categories, so if either or both apply to you, don’t worry. There are specialist lenders who will be happy to work with you, but you have to know where to find them.
Be as flexible as possible
Try not to make the mistake of purely looking to achieve the lowest possible monthly repayment, as that can ultimately be a false economy. For a large mortgage, you might well be tied down for 35 years, and a lot of things can happen in that sort of time period. For example, there has to be at least the possibility that at some point between now and 2054 you might receive some sort of cash windfall.
If you can pay even £50,000 off the mortgage, or perhaps increase your monthly payments by a few hundred pounds a month, it could make a massive difference to the overall cost. However, that is no good to you if the terms prohibit overpayments or early settlement. Try to think of every possible scenario and keep your options as wide open as possible.