If you end up getting a mortgage with a subprime lender and are unhappy with the interest rate you receive, remember that you can always remortgage again later.
Be sure to maintain a good repayment history and keep working on improving your credit so you will be ready to get a (cheap) remortgage again when the time is right.
Beware of such statements such as "No cost to you". Some cheap mortgages providers will add closing costs to your fees rather than require you to pay cash upfront. Make sure you understand all the fees you are paying.
Ask Questions. A good loan officer will answer them. Ask neighbours, friends, look for newspaper and interent reviews.
HERE'S A BIG TIP: ALWAYS NEGOTIATE. The first quote you're offered is not the bottom line. It's easier to get a better deal if you've been offered a better one by someone else. You can use this as ammunition.
You'll likely be dealing with a call centre or a junior loan officer initially. You can say you're definitely interested, but want a better deal, close the conversation, hang up, then wait for them to get back to you.
If they want your business, they will call back. They may try to 'sell you up' to something more expensive. It's their job, so don't take it personally. For their part cheap mortgages providers are not obliged to give you the best deal, despite what consumer web sites tell you.
This 'somebody owes me' attitude is contrary to the basic spirit of capitalism: "Caveat Emptor", or "Buyer Beware!"
When looking for a cheap mortgages-type product, understand that there is an interest rate above which all finance lenders must stay. This is the LIBOR (London Inter-Bank Offer Rate). They have to make a profit. One lender dealing offering a cheap mortgages service may offer a rate .3% below another, but then make their profit on their fees. What does this mean for the avergage cheap mortgages seeker? It means that bargain-hunting via the interest rate alone is a bad idea. You have to take into account associated fees, and quality of service.
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Your best way to find a cheap mortgages is to use Google, and add 'stop' words to the query. Your query would look like this: cheap mortgages -USA -biz -"self-cert", where 'USA' and 'biz' are words, and 'self-cert' is a phrase, from type of sites you don't want in the search results.
While the option to stretch your income to larger mortgagemay be tempting, it's not smart. The reason for this is that you are required to pay back the cheap mortgages you receive and if you stretch your income then actually coming up with the money to payt could be very difficult. So, if you are applying for a mortgage report your income as accurately as possible.
Try to visit their offices, if they have them. A quick look round will tell you more, and more quickly, than an hour on the 'phone.
It makes me chuckle when I hear potential clients seeking cheap mortgages lenders sing the 'cheap-cheap' song. You see the trend in international pricing is down, down, down; eventually, any mortgages-related good that can be reproduced by someone else will cost the same price everywhere. But you won't get the same value, especially if that good is a service.