It might be very tricky when it comes to choosing the right mortgage for you. It is very important that you must take time in making a sensible decision because a wrong decision could hamper your financial and eventually mental health in future. If it is your first time then you must reach to a reputed financial institution like Finansis.

Consider these essential points in choosing the right mortgage:

The amount of mortgage – Choose the amount that you are able to pay because if it goes more than your monthly savings then you might land yourself into a problem. However, most of the banks allow maximum of 4 to 5 times of your individual monthly income but if you already have other debts on you then consider a lower mortgage amount.

Consider your LTV ratio –LTV or Loan to Value is the ratio between the total deposit and assets you have and the total amount of the property you are mortgaging. Like if you have deposit of $ 50,000 on home value of $ 500,000 then the LTV will be calculated as 90%. The more will be the LTV value, lesser would be the mortgages.

Check the mortgage fee beforehand – It would be disastrous if you are buying a house on lower rates but the lender is asking for hefty mortgaging fee. That is why it is important to watch out for the mortgaging fee beforehand, so that you can plan your budget accordingly and choose the right a lender or financial institution.

Mortgage Penalties –Mortgaging lenders charge a lot of fee that are required for the processing like closing mortgage account which could cost you anywhere between £50 and £500. It is recommended that you should choose a lender that provides this service because that may lead to overpayment or early repayment. This will cost you hefty penalty charges and that would be much more than exit service fee.

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