Discount Mortgages Should Be Compared Online With A Specialist Website

Posted by Nick Niesen on October 29th, 2010

If you are looking for discount mortgages then you should compare them online. The cheapest rates of interest are imperative if you want to make the best savings and comparing them online is easy. You do have to consider more than just the rate of interest; you also have to compare the small print.

There are different types of mortgage and this will be one of your first considerations. Two of the most popular types of mortgage are the fixed rate interest and the variable rate. The fixed rate mortgage will allow you to budget better than the variable would. With the fixed rate you would pay a fixed rate for so many years and then move onto a variable rate. This means that during the fixed period you can benefit from a particularly low rate of interest and know exactly how much you are going to be paying out each month. However once the fixed rate is over the cost of the monthly mortgage repayments can jump up considerably.

You can benefit from a variable rate of interest if the rate is low and you take out the mortgage for a short period of time. However with the variable rate the interest rate will go up in line with the Bank of England base rate. This means that if the rate should go up by even a quarter of a percent it can add a lot to your monthly mortgage repayments each month. While of course if the base rate should go down then you would benefit by lower monthly repayments.

Whichever discount mortgage you wish to go for you are better off comparing quotes with a specialist website. By using a site such as this you can get all your quotes together and then make a comparison. When comparing the cost of mortgages you also have to take into account that added costs could boost up the mortgage. The added costs can be found in the small print and should come with the quote for the mortgage. Common extras that are added onto a mortgage include set up fees which can vary quite widely and fees if you should decide to move onto another mortgage in a certain time. These additional costs can make a difference to the overall cost of your mortgage so do compare them along with the rates of interest.

Discount mortgages do need to be given scrutiny because lenders can try to pull the wool over your eyes by advertising what seems to be low rates of interest then adding whopping extras onto the cost. If you do research and compare quotes with the whole of the UK marketplace you can be sure you have searched with the UKs top lenders and will have got the best deal. You do have to take into account the key facts of every individual mortgage you are considering as just as the interest rate can vary so does the small print. Some mortgages can come without any set up fees but almost all will have a clause that states you have to remain with the mortgage for a certain period of time.