Choosing The Best Mortgage

best mortgage

What is the best mortgage for you?

When arranging a mortgage,   you naturally want to obtain the best mortgage available to you.
There are numerous websites quoting the ‘top mortgage rates’,   but what does this really mean?
Are they really the best mortgages available,  and how do you decide the best buy mortgage for you?

How mortgages work?

When you arrange a mortgage,  you are asking a bank or building society to lend you money over an extended period of time.  Clearly a bank will not release a mortgage to just anybody and need to be sure that their money is safe. Therefore,  what is considered the best mortgage on the market may not be available to you as a borrower due to your risk profile.

The important thing therefore,  is not what is the best mortgage available (usually the least expensive),  rather what is the best mortgage available to you.

This reality in the mortgage market means that the numerous online best buy mortgage tables can only give you a guide as to potential mortgage rates.  There is no way that these tables can assess whether any particular mortgage would be available to you.  To find the best buy for you,  you need a mortgage review from an experienced independent mortgage broker.

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Finding the best mortgage rate

How you go about finding the best buy mortgage for your circumstances?  The best mortgage rate available will differ depending on whether you are:

  • a first-time buyer
  • an applicant with poor credit
  • buying affordable housing
  • buying to let
  • a self-employed applicant
  • using a guarantor

The above are just an example of various permutations,  but fortunately your independent mortgage broker will understand following their mortgage review what are the best mortgages for you given your circumstances.

Example – what is the best mortgage company for self-employed applicants?

Let us take the example of a limited company director running their own business.  All mortgage lenders will consider self-employed applicants.  What is key however,  is that nearly every mortgage lender has a different view when considering the income for the self-employed.

For example:

  • most mortgage lenders will consider a three-year self-employed track record
  • some mortgage lenders will work from a two-year self-employed track record
  • some mortgage lenders will work on a one-year self-employed track record
  • some mortgage lenders will only consider PAYE and dividend payments
  • some mortgage lenders will consider retained profit
  • some mortgage lenders will deduct Corporation tax when considering retained profit
  • some mortgage lenders will consider retained profit gross plus PAYE

the list is endless.

For one client,  the best self-employed mortgage company may be Santander,  for another,  Halifax.   A third may find Virgin Money to be the best mortgage company for their circumstances.

For this reason, the best mortgage broker for the self-employed will be independent and highly experienced in the self-employed arena.  They will know the best mortgage company for self-employed applicants and will have discussed the self-employed with mortgage lenders on numerous occasions.

If you need help finding the best mortgage lender for self-employed applicants call us now on 020 8979 9684

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