Re mortgages

Wishing to take your role as a responsible borrower seriously, you should find out what you can afford in monthly loan repayments by performing a full financial appraisal on yourself. Subtract from your monthly income the obligatory expenses that you are committed to, and then give yourself 10% leeway on that in case of emergencies. The figure that you are left with is the maximum monthly loan repayments you can afford. You need to know how much you want to borrow and over how long a period you are prepared to pay it back. Then you can use a loan calculator and get the most out of it.

Look over your current deal to find out if there are any redemption penalties. Also find out from your mortgage broker if you are in a negative equity position. In the unlikely event that you are, you should think twice about moving your loan because you will have to find this money before you can move. The next thing to bear in mind is the cost of the new mortgage: alongside a possible arrangement fee for the loan, there may be legal fees to meet, the price of a new valuation and the cost of local authority searches. It all depends on your mortgage lender. You may choose a deal without an arrangement fee, which will save you money. If you have had a valuation done recently the new mortgage lender may be willing to accept its findings. Or you may find a lender willing to pick up the tab for the conveyancing and the survey.