How to survive the credit crunch

With all the doom and gloom in the press recently, it's easy to believe that you'll never get a decent mortgage deal again. Whether you are an existing borrower looking for the best remortgage rate, or as a potential first time buyer trying to get a foot up on the property ladder. The reality however, is somewhat different - here are some pointers you should follow to make sure that you are in the best position.

Existing Borrower

• Make sure know your existing mortgage details - interest rate, when the deal ends and how much you owe. You should aim to switch your mortgage 3 months before it is due to finish.  And most importantly - Check whether your current deal has any Early Repayment Charges (ERCs) and when they finish.
• Take advice from a reputable mortgage broker. One that will search the whole market and not charge a fee for their advice. This will ensure you access the best deal for your personal circumstances - L&C will offer you this level of service. 
• Don't delay when you find a deal you want - the best deals are often withdrawn at short notice and are never around for long. As an extra incentive with L&C, 50 trees will be planted on your behalf. So you can have a green mortgage at the best rate.
• If you have any spare cash, this should be used to make overpayments on your mortgage. It is often the case that, the lower the amount you borrow relative to the value of your property, the better the deal you will get.  Before making overpayments, you should check with your lender that you will not incur ERC's.
  

First Time Buyer

• Save as much as possible for your deposit on the property - Lenders offering 100% deals have been reduced considerably, and the cost of these deals has increased.  The bigger the deposit you can afford, the better the deal you are likely to get.  However, don't forget to budget for other costs such as solicitors fees, survey fees and stamp duty (use the L&C Stamp Duty calculator)
• To see how much you are likely to be able to borrow, use the L&C Calculator .  Remember to include all monthly costs such as council tax and home insurance when working out a monthly budget. 
• You should research the property market fully before considering an offer. Remember that it is currently a buyer's market and considerable savings could be made in negotiating an asking price. 
• Take advice from a fees free, whole of market mortgage broker who can access the best deals - remember to ensure that overpayments are an option on the deal so that you can reduce the capital whenever you have spare cash  - it will stand you in good stead for the future.
• Watch out for Higher Lending Charges (HLC).  Most lenders charge a HLC to borrowers with a deposit of less than 10%. These HLC's can cost thousands of pounds and should always be avoided.
• Most importantly, you should remember that getting a good deal on your mortgage will save you money compared to being on Standard Variable Rate (SVR) - a typical SVR is around 7.00%. Don't overstretch yourself, only borrow what you can afford to repay and finally that housing is a long-term investment - you're unlikely to make a quick buck.

London and Country is an Award winning broker offering FREE mortgage advice from the whole of the market.

To speak to an adviser call 0800 953 0304  or book a call back
To see current Best Buys Click here
To use L&C's calculators Click here