Ask the Lender or Broker the Right Questions

When you are applying for a mortgage loan, there are a few questions to ask the lender or mortgage broker - it's not only a question of choosing the product with the most agreeable interest rate! Present the following questions and then once you have them, you can research mortgages and their conditions and get the proper mortgage package for you.

What prerequisites do I need to comply with to be approved for a specific loan deal?
Loan criteria varies from lender to lender with a number promoting better loans than do others. Conventional factors that can have an effect on your suitability include the amount of income you have, financial history and credit rating, and your employment record etc.

What is the minimum loan-to-value (LTV)?
The loan-to-value is established from the sum you need to be lent alongside the worth of the house, and the amount of down payment you can make. The lesser the LTV, the greater number of offers that you can have access to, and at more agreeable terms as well. Such as, if it is possible for you to put a 20% deposit down (this would be an 80% LTV) in place of a 5% deposit which would offer a less adequate LTV of 95%.

What is the APR (annual percentage rate)?
Because the annual percentage rate of the loan interest has a tendency to be larger than the initial rate quoted, it makes it easier to examine varying mortgage loans in light of the annual percentage rate instead of the promotional rate.

When deciding on a personal loan, there are a few key considerations…

Low APR
So what is this thing called an APR? APR is short for “Annual Percentage Rate“ and this reflects the exact interest charge. Albeit you could catch sight of a personal loan advertising a x% APR, you might not actually get it at the promotional rate as the APR given depends on the amount of the personal loan and at times the length of the term as well.

Your credit rating might as well influence the APR rate you are quoted.

Fixed and Variable Interest Rates
For loans, a number of lenders now present fixed and variable interest rates. You must weigh up what will be the most suitable for you - having a standard fixed amount being withdrawn from your bank account or one that may well vary as the Bank of England interest rates rise and fall.

Personal Loan Fees
When taking out a personal loan, many lenders or brokers will also charge you an additional fee. These charges can be different, so be certain that you acquire the loan with the best fee.

Deferment Periods and Payment Breaks
Though a payment break or deferment period (which suggests there is a break between the time you receive your personal loan and when the initial repayment has to be paid) sounds beneficial, keep in mind that interest will still be charged over this period, the implication is that you will pay out a greater amount of interest at the end of the day.

Early settlement penalty
If you opt to pay out your personal loan prematurely, then in most situations you will have to pay an Early Settlement Penalty. Typically, this will be around two months' of interest.

When choosing a personal loan, be sure to routinely find out what the Early Settlement Penalty is because you might just find a lender who does not charge one.

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