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Let to buy mortgage lender
When looking for any mortgage it pays to be aware of the different strengths and weaknesses of individual lenders. It is also wise to consider carefully how your own requirements may change in the future. If you do so, you can shop around for a lender that matches your needs for the long term, as well as the short term.
Many people, when looking for a mortgage deal, will opt for the best rate, or the longest fixed term available, or the biggest cashback lump sum. But it is easy to be enticed by the prospect of saving, or even making, money into plumping for a lender that will soon fail to meet your needs.
To take a simple example, you might opt for an all-frills, mega-cashback deal with a very low fixed interest rate. For now, that's fine: you'll be rolling in money and your payments will be minimal.
A few years down the line, however, things could look very different. Your cashback is all spent, your low fixed rate has turned into a high variable rate, and you can't change lenders because you'd have to pay a huge early repayment charge. Worse, your existing lender may exclude you from taking part in any of the super deals they're offering new customers.
With cut-throat competition among lenders for new business, it is often existing customers who have to pay for the incentives lenders offer to newcomers by paying higher rates.
Even if you're not tied in to your existing mortgage, are you really prepared to take time out every two or three years to fix up a new, better deal? Unless you have plenty of time to go into all the variables, it's not too difficult to actually end up worse off after switching lenders, especially when all the time and trouble involved in the process is taken into account.
If you're prepared to put in a little research when taking out a mortgage, it is possible to find lenders that won't freeze you out of special offers and cut-rate deals just because you've been a loyal customer for a number of years.
You may find that using someone independent but experienced could help you get the best let to buy lender in your court. We all have different needs, and not always have the time to look for products to suit by ourselves - leave it to the professionals here if you want someone to point you in the right direction.
