| Most people tend to take out a mortgage, then forget | | | | APR (Annual Percentage Rate) allows you to |
| about it. The monthly payments go out from their | | | | compare the loans offered by different mortgage |
| accounts every month, but they probably couldn't tell | | | | lenders in a like for like manner, and shows you the |
| you what the interest rate was if you asked! This is | | | | true cost of the loan as a yearly rate. This stops |
| slack financial policy - it is easy to make sure you | | | | lenders hiding 'extras' (such as upfront fees) behind a |
| always have the best mortgage rate, and therefore | | | | fog of low rate claims, and means you have the true |
| pay the least interest. And believe me, over the years, | | | | rate to play with. generally, most house hunters get an |
| even a fraction of a percent reduction in interest rates | | | | approval in principle from their chosen mortgage |
| means big savings! | | | | company. This makes you more attractive to sellers |
| You need to get in the habit of noticing current interest | | | | because it shows you are serious, and have the |
| rates. This is especially true if you are currently in the | | | | financial wherewithall to proceed should you decide to |
| market for a new mortgage. Generally, mortgage | | | | try and buy their house. It will also give you a firm |
| rates track the central banking system's 'base rate', but | | | | indication that of what your budget is (although most |
| there are a LARGE number of deals for new | | | | lenders have slackened their rules in recent years, they |
| customers, including early year discounts, fixed rates, | | | | still apply SOME rules!). This pre-qualification will keep |
| capped rates and so on. If your mortgage company | | | | you in the right price bracket too, and stop you wasting |
| isn't offering you a competitive rate, but other | | | | time on properties beyond your reach. If you meet the |
| mortgage lenders are, confront them with it! Often | | | | lender's criteria, try to lock in a rate. This means the |
| they rely on your disinterest to keep overcharing you | | | | lender promises to hold their offer for you at a certain |
| interest (excuse the pun!). When confronted, they | | | | rate for a certain time while you proceed with the |
| usually crumble and will offer you a better deal rather | | | | purpose. Variable rate mortgages, more popular in |
| than lose your custom. | | | | Europe, can be crippling if rates rise from the |
| Always use the APR when comparing loans. The | | | | historically low rates prevalent at time of writing. |