How do you research the best mortgage deals?

goldlemontree

I have spoken to a financial advisor through my work, he has managed to find a BTL that will lend to me. 

The total cost would be £511.11 per month once the arrangement fee of £995 has been added. This is based on borrowing £150,000 out of my unencumbered property valued at £200K on repayment basis fixed for 5 years over a 35 year term, 
There's also £300 cashback from the lender which I've been advised to put towards our own solicitor, who after receiving a quote would be £459 in total after all charges, instead of using the free legal, and a fee to pay to advisor once all is complete of £495 though the commission they receive from lender will be offset against this.

Just wanted to ask, are comparison sites the best option to research whether I am getting best deals this is the first time I am taking out a mortgage, and also how to work out what the rate is for the above I have been recommended? (my maths is terrible)

Thank you

K_S

@goldlemontree It's the broker's job to get you the most cost-effective deal out there that you are eligible for and meets your requirements. Along with a recommendatoin for a specific product, I always send out an evidence of research chart which shows where the recommended product stands in the list sorted by total cost and why it has been recommended over something else that may be lower on total cost. If you ask your broker, he may be able to provide something similar as well.

If that's the BM or Virgin 2.14% 5-year fix, then you're right up there among the deals topping the charts as of today.

kingstreet

Have you been provided with an illustration?

getmore4less

You need to understand what YOU mean by best.

Often lowest cost is not the right answer as the costings are done wrong.

lonibra

For BTL, I use the moneyfacts comparison site. Put in the parameters and sort by total cost over 5 years and look at the list. The lowest cost will not always be available to you as it might come with conditions that you or your property or your finances don't meet.

lonibra

And why are you taking capital repayment for a rental? It will involve more paperwork I think. You can just take interest only and overpay as needed. 

goldlemontree

kingstreet said:

Have you been provided with an illustration?

I’ve only been told what I put in my original post so far