7 Things to Look for in a Reputable Mortgage Lender

By far, one of the most complicated decisions a person will make in their lifetimes is where they should borrow the money for their mortgage. A home is a huge investment and something that most people simply won’t be able to afford all at once. The question is, with so many different mortgage lenders out there, how do you choose one you know you can rely on for the long-haul?

If you’re lucky enough to have multiple different lenders ready to accept your application, the following tips will help you to choose the perfect provider for your property loan. Here are 7 things to search for in a reputable lender.

1. Specific Expertise

Depending on what kind of borrower you are, you might find it easier to work alongside a lender with specific skills. For instance, if you’re a first-time homebuyer, then the right mortgage lender might be able to give you the guidance you need on your help-to-buy mortgage.

Since you’re going to be stuck with the expense of a mortgage for a few years to come, it’s important to make sure that you choose someone who’s going to help you get the right deal for you.

2. A Great Reputation

Regardless of whether you’re looking for a personal loan provider, a mortgage lender, or anything else, it’s important to make sure that you pick a provider with a great reputation. Today there are plenty of platforms online that can help you to learn more about a mortgage company by looking at their reputation such as the online credit portal smava.

Although reputation isn’t necessarily the only important thing to watch for your lender, it does give you an insight into what you should expect from the company in terms of service and support.

3. Loan Amount and Term

Different mortgage lenders will be willing to offer you different percentages of your home’s value depending on your circumstances. The amount that someone is willing to give you is important because it can help you to determine how much you need to save for a home down payment.

You should also keep the length of the mortgage offered in mind too. A lot of people today go for maximum terms of between 35 and 40 years, but some companies aren’t willing to give you money for that long.

4. Good Communication

It’s important to make sure that the communication you have with your mortgage lender is as good as possible. After all, you want to know for certain that you’ll be able to reach out and connect with your loan provider if something goes wrong with a payment.

While a competitive rate on your loan will always be important, remember that your loan provider needs to be helpful and accessible too. If you can never get in touch with them, this won’t bode well for your financial future.

5. How Much Will You Need to Pay Each Month?

While it’s tempting to get caught up looking at the interest rate or “APR” offered by your mortgage lender, keep in mind that the monthly payment you’re expected to make is crucial too. This will help you to develop a budget for your new home based on how much money you earn each month, and how much your other outgoing expenses come to.

If the amount you need to pay isn’t great for you, this either means that you can’t really afford the house you’ve been looking at, or that you need to find a lender that offers a lower interest rate and a longer term.

6. Is the Rate Fixed or Adjustable?

You probably already know that there are many different types of loan available in today’s market. Today’s mortgages are often divided into two separate categories: those for “Fixed-rate” loans, and those that are adjustable. A fixed-rate mortgage means that your interest stays the same for an extended period. On the other hand, an adjustable mortgage rate will change according to trends in the marketplace.

While adjustable mortgages can sometimes be less expensive than their fixed-rate counterparts, some people will prefer the security of knowing how much they have to pay each month.

7. Do They Have any Additional Fees?

Some mortgage lenders offer their borrowers additional benefits to make it easier for them to afford their mortgage. For instance, you might get some money back off the costs of your mortgage, or your lender might pay for your house assessment on your behalf.

On the other hand, there are also lenders that ask for extra fees that need to be paid before you can begin your loan. Knowing exactly how much you have to pay with any given lender can help you to make the right decision.

Emu.co.uk is NOT a direct lender and our loan-matching service is free to use. We don't charge a fee, but there might be a charge from some lenders within our network. Emu is a trading style of Ready Money Capital Ltd. Emu.co.uk does not make lending or credit decisions, we are not a lender - as a broker we match customer's loan applications with lenders in our database depending on the information provided. Ready Money Capital Ltd is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference number 802557. Licensed by the Information Commissioners Office (registration number ZA441875).

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk. Emu is a broker, not a lender, and does not make credit decisions.