
10 ways to maximise your mortgage chances
Here are 10 top tips to help improve your likelihood of being accepted for a competitive mortgage deal
A capped mortgage can help to give you peace of mind that your monthly mortgage repayments will never go above a certain amount
Your home may be repossessed if you do not keep up repayments on your mortgage
A capped mortgage limits the amount of interest you can be charged on your monthly mortgage repayments.
A capped mortgage works much like a standard variable rate mortgage – the interest you pay on your monthly mortgage repayments can go up or down, depending on where your mortgage provider decides to set its standard variable rate.
The difference with a capped mortgage is that the interest rate can never go past a certain limit - the cap - during the deal, even if the standard variable rate goes higher than this.
A capped mortgage deal usually lasts between two to five years, and once the deal is over, you’ll then be moved onto the provider’s standard variable rate.
At this point you can then decide whether you want to move to another capped mortgage – if this is an option – or take out a different mortgage type or switch providers.
A capped mortgage can offer advantages like:
Some possible disadvantages to a capped mortgage include:
Compare mortgage quotes with MoneySuperMarket’s mortgage comparison tool. Enter the amount of money you think you’d need to borrow for a mortgage loan and how long you’d ideally want to be paying the loan back, as well as the price of the property you’re interested in to see which mortgage deals you might be able to get.
You’ll then be able to compare quotes from different providers by their initial monthly cost and interest rate, the lender’s standard variable interest rate you’d then be moved to, the overall cost of the mortgage, and whether there are any fees included as part of the deal.
The comparison tool doesn’t take into account your financial situation or your credit history, so the interest rate deal you’re offered on your capped mortgage or other mortgage type may be different to the quotes you see.
Here are 10 top tips to help improve your likelihood of being accepted for a competitive mortgage deal
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