Friday, August 19, 2011
posted by PabloPabla at 11:20 am

The vast majority of people will find that the one greatest investment and financial decision that they make will be in taking out a mortgage, and specifically which mortgage that they will need to take out. This is one of the things that make mortgage rates, and the amount of interest that will be repaid on the mortgage such an important thing for every homeowner to check, but there is more than just the rate itself to consider when looking at the cost of a mortgage.

One of the first things that need to be looked at when considering applying for a mortgage with a specific lender is to see what booking fee will actually be charged for the mortgage. For many products which offer exceptionally competitive mortgage rates, once the booking fee is taken into the equation the overall cost can increase significantly, with the fee all being taken upfront, rather than spread across the cost of the mortgage.

Another thing to look at for those who will be remortgaging rather than taking out an entirely new loan is to see what the transfer fees to move an existing mortgage from another bank into the new bank will be. Again, with this proposition the mortgage rates may appear to be very attractive, but factoring in the fees it may become a lot more expensive, especially when considering that some banks are willing to transfer mortgages with no additional fees at all.

Looking at the mortgage rates that are immediately available when the deal is taken out is one thing, but it is also important for people to look at what they might be getting in two, three or five years time in terms of the rate. A discounted rate now might appear like an excellent deal, but it will usually revert back onto another rate, which may be less competitive, and end up costing more in the long run.

Ultimately, it is important to shop around to find the best mortgage deal as a whole, and although the mortgage rates may be an important part of the overall package, the headline rate may not necessarily prove to deliver the least expensive mortgage.