Mortgages: 1) The best mortgage for you

When entering into a mortgage for the first time, it is important to realise that what seems to be the cheapest option may not necessarily be the deal that's right for you.

Quoted rates are a snapshot in relation to how the market is performing at a particular point in time, and in this respect it is a good idea to examine the history of your Lender's performance over the last 5-10 years. This will give you an indication of how competitive their rates have been over a longer period. We all want a mortgage that will cost us as little as possible over it's term, but what we need to remember is that we also need mortgages that will bend with our various needs as their term progresses.

It seems that there is very little difference between rates quoted by Lenders at any given point in time. However, since the Consumer Credit Act was passed in 1996, Lenders must now quote an APR (annual percentage rate) on their literature, this figure provides us with a truer figure regarding the cost of our mortgages in that it also reflects the associated costs of your mortgage. These may include, indemnity bonds, bank charges, arrangement and legal fees etc.