The lowest mortgage rate may not always be the ‘best deal’!

Monday, March 26th, 2018

In the aftermath of the base rate rise at the end of 2017, many borrowers may be looking to secure a fixed rate mortgage deal to reduce the impact of any potential future base rate increases. In short, they want to avoid an increase in their existing monthly payments.

There’s more to it than just finding the lowest interest rate…

However, the lowest interest rate may not necessarily turn out to be the cheapest or even the most suitable option, as it is also important to consider any additional fees involved when choosing a mortgage product. What can be helpful is a comparison between the various deals that are available, some of which will have low rates and high fees whilst others will have higher rates and much lower fees.

Compare the full cost of the mortgage deal

Only when a comparison of the full cost of the mortgage deals being considered over the offer period is carried out does the ‘most suitable’ deal become apparent. This can be done by using the APRC (Annual Percentage Rate of Charge). However, some borrowers may prefer to use the services of a professional mortgage broker who will not only have the knowledge and tools available to perform calculations and quickly return the results with a suitable “recommendation”, they will also able to assist with the whole mortgage process and answer any questions along the way, which is where the team at Caboodle Finance can help.

Although it is true that some applicants prefer to focus solely on the lowest possible repayment amount without giving much consideration to lenders’ fees, others will make their decision based on the total amount that would be repayable over the appropriate offer period, and some of course will choose products purely based on the comparative APRC. At Caboodle, we will of course always advise our clients on what we believe will be the best deal for them given their circumstances and specific requirements.

Your local mortgage broker can help you find the best deal

Customers who use a dedicated, professional mortgage broker such as ourselves, will get speedy access to all the appropriate information and benefit from their accumulated knowledge and experience. The latter is particularly important given the wide range of criteria and requirements often applied by lenders on their many and various products.

By your side throughout your mortgage journey

If you would like to know more about how our friendly approach could help you on your mortgage journey, please call us here at Caboodle Finance of Sutton Coldfield, Birmingham today on 0121 308 9114 or click HERE to contact us by email.
We very much look forward to hearing from you.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. For secured loans a broker fee up to 10% of the loan amount borrowed may be payable on successful completion. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England at SQ2 House, 240b Lichfield Road, Four Oaks, Sutton Coldfield, West Midlands B74 2UD (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

© 2017 Caboodle Financial Services Ltd