The Department of Trade and Industry (DTI) has produced a list of key questions that it is suggested customers should ask when taking out a mortgage. This is based on information from research conducted on issues that have caused problems for customers. It is included as additional information that may be useful to you when choosing a mortgage, and to help you avoid potential problems.
These key questions are:
- How much can I afford to borrow?
- How can I tell which mortgage rate is best for me?
- What is the best type of mortgage for me?
- How should I repay it?
- Can I make lump sum payments to reduce the size of the loan?
- Are there any redemption penalties?
- Does this mortgage come with compulsory insurance?
- What other charges will I have to pay? – Examples may include lenders’ application fees and intermediary’s arrangement fees. The Mortgage Board’s experience highlights the importance of having a full knowledge of all costs involved.
- What happens if I can’t pay?
- What about the small print?
In addition we would recommend that you are fully aware of the basis on which interest is calculated on your mortgage.
You should seek advice from your lender or intermediary on these key issues if they are not covered to your complete satisfaction in your discussions with them