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Apr
kacy75
Posts: 175 Forumite
Ive been trying to find a mortgage and noticed they all say the APR for comparison. If its low does this indicate a good deal or have I got it completely wrong?
Never look back if you want to move forwards
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APR's are not something that I compare mortgages by personally because they all assume that you will be with the same lender for full term on the mortgage and that should never be the case.
In answer to your question though - the lower the APR is the better it is (if in comparison with a like for like product and term - i.e. both products are repayment over 25yrs)I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
What is the easiest way to compare mortgages?Never look back if you want to move forwards
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Use a professional would be my first answer.
You first need to work out what type of mortgage that you want - repayment or interest only.
You then need to work out what preferntial rate you want, whether you want cashback, tracker, discount, capped, fixed or no frills variable rate.
You then need to work out how long you want to have the the preferential rate for. 2,3,5 7 or 10+ years.
Once you have the answers to these - 3yr tracker for example then you need to find all the 3 yr tracckers out there in the market place
You then need to work out what are you looking for out of these products - do you want lowest monthly payments, do you want lowest set up costs or do you want cheapest overall.
There are certain things you need to factor and remember - are you being charged a Higher Lending Charge, are you being given a product with extended tie ins, are you getting a product with stepped interest rates which may mean the deal isnt as competitive as you thought. You also need to work out whether they will lend enough to you if anything at all.
Bearing in mind that there are quite a few things that can trip you up and will have you going around in circles, a professional can be an ideal solution for you. A good one will explain things fully and hopefully give you some education to allow you to maybe do it alone next time if you wanted to but if you get a good fee free broker, I cant see why you would ever want to.I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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