5 ways to make the mortgage market work for you
Maximise your deposit to pay less interest
While the amount you can borrow will generally depend on your household income, the interest rate you will pay is also influenced by the size of the deposit you can raise in relation to the price of the house or flat.
You could, for example, get a two-year fixed-rate deal from HSBC with a rate of 2.54% and a £1,999 fee, but only if you have a deposit of at least 40%.
For borrowers with a deposit of just 10%, however, First Direct’s two-year fix at 4.19% with a £999 fee is hard to beat.
If there is any chance of scraping together a larger deposit, it may therefore help you to make big savings over the next few years.
Every week, Clare Francis, financial journalist and editor of comparison site moneysupermarket.com will offer tips and advice on all things money-related to help iVillagers make the most of their hard-earned cash. From energy bills to car insurance; credit cards to children’s savings accounts; mortgages to discount vouchers Clare will show you how to make sure you’re getting the best deal.