Mortgages

Things to Consider

Expect to change your mortgage several times over its life to take advantage of better deals.

Check for the facility to finish your mortgage early - are there any penalties?

Check for facility to pay extra to reduce the debt (and interest) - are there any penalties?

Before taking mortgage check for administration / arrangement fees - be sure these do not outweigh the advantages of chosen mortgage.

Insurance

Does the lender require you to take any insurance? Almost certainly they will require that you take out buildings insurance to safeguard their security in the event you default on the loan. But some lenders may also require you take out other insurances, eg life insurance, payment protection insurance etc.

Check if you really need this insurance. For example, if you have no dependants, you don't need life insurance, so if it's required then probably best to look for another lender.

Check also if the insurance is beneficial, eg payment protection insurance may not be suitable for self-employed people or contractors, or come with so many restrictions or limitations as to make it worthless.

Sales people often use scaremongering tactics to sell unnecessary insurance. Avoid signing up for anything on the spot. Always take time to consider the value of what's being offered, and check if an equivalent or better deal is available elsewhere.

Beware also of mortgages that require you to take insurance from the mortgage lender. The price may be uncompetitive, and by the time this is factored in what initially seemed the best deal might not be so in reality.

Insurance can be a valuable source of security, but be sure that you only take out insurance you need and that it is bought at the best available price. Don't be fooled by attractive mortgage quotes that require you to purchase decidedly unattractive insurance packages.