Getting a mortgage quote is a complicated business. Firstly let’s look at the physical aspects. It’s always a case of chicken and egg- your estate agent will want you to have an in-principle mortgage before they take you seriously (or at least they’d like to sell you one!); equally, lenders would like to know what property you want to buy before they offer you the funds. That’s particularly true for restricted properties such as right-to-buy properties, houses with thatched roofs, blocks of flats etc. to make things a little easier, some companies are offering a guaranteed decision in as little as 15 minutes (the Halifax, for example).
Now to the finances- the big issue is the difference between the quoted rate of a mortgage and the true cost. The quoted rate is an APR; the interest rate you will pay per year expressed as a percentage of the total value of the loan. However, the true cost of the mortgage adds a whole raft of other bits and pieces. These can be benefits back to you (for example cashback, reduced fees, loyalty benefits etc.) or future issues such as redemption penalties. Only you, and your individual circumstances, can resolve these points into a cash assessment of a mortgage’s true deal value to you. Some sites, (Moneyextra and Ashley Law in particular) have great tools for working out the true cost of a mortgage quote, and their listings will give you the actual cost across the term of the mortgage of any particular deal.
Finally, who do you get your quote from? You can either go direct to a lender (and some offer special web-deals for internet booking); or you can go to a financial adviser- there’s not much in it in cost terms, but since the cost of an adviser is largely transparent, you’re well advised to at least get an idea from an adviser of what type of mortgage is right for you.
