The mortgage you get will affect your outgoings for many years into the future so it is best to do some shopping around first. In order to get a mortgage which will enable you to purchase a property quickly, there are some steps you can take. Let’s take a look at the different types of mortgage and which one is best for quickly purchasing a home.
Interest rates
You can choose between a variable rate and a fixed rate mortgage, depending on what your budget will allow. If you want to keep your mortgage payments the same every month then go for a fixed rate. The interest will stay at the same rate for a period of time (between 3 and 5 years) which means that you will know exactly how much you will be paying each month. The only disadvantage is that the rates won’t fall. A standard variable rate mortgage will move up and down depending on the lender’s rate of interest. This means that you may pay more from one month to the next but your mortgage could also fall at a moment’s notice. So how can you speed up the mortgage process and what kind of mortgage packages are there for those who want to purchase a house quickly?
Getting a fast mortgage
To make a quick purchase, you will need to ensure that a mortgage provider is willing to lend to you. The best way to do this is to have a substantial deposit. This is easier for those who want to sell their current home or for those who have a large amount of savings. Having a large deposit means more mortgage options are available and you will have more lenders to choose from. Also, check how long the mortgage will take to be approved. If it is 4-6 weeks then go with another lender. Some are approved within 10 to 15 days.
Which mortgage?
A fixed rate mortgage is usually the fastest to be approved as the rate will stay the same for a set number of years. Standard variable rates are becoming more unpredictable so a fixed rate mortgage will help you budget your finances too. A fixed rate mortgage is easier to shop for which will cut off some time on buying your new home. All you have to do is compare the mortgage rates and pick out the lowest rate. This may not necessarily mean the lender will automatically give you the loan but if you have taken the precautions stated above then it should make it easier to get approved.
You have the option to change your mortgage provider but beware of exit fees and always read the contract before signing. You can choose a fixed rate to make a quick offer on a house then change to a variable rate thereafter. If you want to significantly reduce the chances of you being denied a mortgage then make sure that you have good credit and can afford the monthly payments.