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What questions should I ask when looking for a mortgage?
10 key points In September 2000 the British
government published a list of vital checks to help homebuyers
understand what questions to ask before committing themselves to
getting a mortgage. These questions are useful
for any person (in any part of the world) who is planning to get a
mortgage to buy a house. The government suggested
that buyers should ask the following 10 questions:
1. How much can I afford to borrow?
(Consider the costs per month plus any fees that you will have to
pay) 2. How can I tell which mortgage rate is
best for me?
3. What is the best type of mortgage for me?
(e.g. fixed rate, variable rate, discounted or low-start etc).
4. How should I repay it?
(Consider why the lender is trying to sell you whatever they are
recommending and whether there could be something that suits you
more. Also enquire about what commission is the lender getting).
5. Can I make lump sum payments to reduce the
size of the loan?
6. Are there any redemption
penalties?
7. Does this mortgage come with compulsory
insurance?
8. What other charges will I have to pay?
9. What happens if I can't pay? 10.
What about the small print?
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