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Buying Tactics - Tips & Tricks

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There are 3 ways to take out a mortgage -

  1. Directly through a bank or building society
  2. By using a specialist mortgage broker, or
  3. By using a financial advisor
So which one is best?

In my opinion a specialist mortgage broker is by far the best way to take out a mortgage. More details on how to use a mortgage broker on this page.

Banks & Building Societies
The banks because of their size control the majority of the mortgage market but the building societies also play an important role.

While I think the best strategy is to use a Mortgage broker it's unwise not to consider what the banks are offering. So spend an hour or so visiting a number of bank/building society websites to check out their latest deals. And if you find anything of interest call them up for an initial chat.

Mortgage tip

  • Local Building Societies often have deals available for properties within their area
  • For example the Saffron Walden Building Society might offer someone a good deal if they buy a property in or around Saffron Walden (Essex/Cambs borders) but the same deal won't be available to buy a property in North London or Manchester

Some building societies also offer loyalty benefits where the borrower might get a slightly reduced interest rate (or signing up fee) if he or she has been a client for a number of years.

Note that Building societies SVRs have traditionally been cheaper than the banks' SVR. More details on what the SVR is on the mortgage interest rate page.

Mortgage Brokers

Independent Financial Advisors (IFAs)

I'm not a great fan of using an IFA to buy a mortgage because usually they're just another middleman that needs to be paid.

Chances are if you contact one they'll in turn contact a broker to sort through the mortgage maze. So why not contact the broker yourself?

However, if you've already got a happy and prosperous relationship with an IFA then at least have an initial chat to see what he can offer or advise.

LearnMoney Comment :

We consumers normally have the upper hand over the lenders when looking for a mortgage because we have the luxury of choosing who to do business with (assuming our credit files are sound), not the other way around.

Believe me, the banks and building societies are desperate to sign up new business so -

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