It’s a well-worn cliché that moving home is one of the most stressful things that we humans can subject ourselves to. This becomes even harder with a family in tow. Every task can seem as though it has taken on a life of its own and each little job becomes a mammoth undertaking. Moving on your own is one thing; moving with a partner actually helps share the burden; but moving with children, two dogs, a gerbil and a goldfish can be hard work.
If you’re a head of a family, you’ll be well used to enlisting others to help. Maybe you ask your parents to watch the kids so you can enjoy a rare cinema trip or perhaps you ask your sister to take your child to the dentist because you can’t get out of work. When moving house you’ll certainly ask your friends for help, simply because there is so much stuff to move. And when it comes to finding the best mortgage offers, you need a helping hand.
The best mortgage isn’t always the mortgage with the best rates or the longest term, the best mortgage is the one that fits your circumstances and is sympathetic to your budget. If you are a young family with no children or perhaps very young children, money can be tight. It may be that you’re both not in work at the moment as one of stays at home until the children are in full time education. In this situation it’s recommended that you look for a ‘Fixed Rate’ mortgage. Unlike a ‘Tracker’ mortgage, a Fixed Rate deal will hold its APR throughout its entire term meaning that you will be able to plan your budget well ahead.
The best Fixed Rate deal at the moment belongs to The Post Office who ask for at least a 25% deposit at 3.29% APR (rising to 4.49% after two years). Those with a smaller deposit should also look at The Post Office’s 5.39% Fixed Rate deal which requires only a 10% deposit.
Those with a more secure financial background should think about Tracker mortgages. These follow the Bank of England Base Rate and with interest rates low it is much smarter to put any spare cash towards paying your mortgage rather than let them rot in a low yield savings account. The Post Office again comes out top with a +2.39% Tracker (this means it will sit at 2.39% above the current base rate) followed by Santander at +2.59%. Beware, the Santander deal requires at least a 40% deposit.
A special mention must go to the HSBC +2.14% life time Tracker. At the moment this would be the best deal, but if interest rates rose steeply in the future, so would your payments. Only invest in this if you are confident that you would be able to remortgage should the worst happen.