It’s Halloween, but it’s not just the ghosts and ghouls that are frightening folks. Mortgages can be spooky and intimidating too. Here’s three things that petrify people about mortgages…and why they’re not actually that scary at all.
It might be the night of fright on 31 October, but this isn’t the only time of year that folks get scared. Lots of people, from first time buyers to us in the Atom bank family, can find the world of mortgages scary, baffling and downright frightening.
And it’s not surprising!
Here’s three giant things that mortgage customers find confusing. We peel off the scary mask to reveal what’s underneath, it’s just not that frightening at all.
1. How do I know which mortgage is best for me?
When you start looking at mortgages, it’s easy to get lost in the different percentages, fees, and choices of fixed or variable rates. But be assured, it’s also easy to make sense of it all.
We only use qualified professional mortgage brokers. These are hand-picked mortgage experts scattered across the UK. Unlike your best friend who reassures you when you ask “does my behind look big in this ghost costume”, brokers give you honest responses. In fact, because they’re regulated by the FCA - they have to.
They’ll recommend the best mortgage for your unique circumstances. When they find it, our brokers give you an illustration. This tells you their reason for recommending that mortgage. So you can read it and totally understand the product and why they’ve picked this one for you.
2. How do I know how much a mortgage will cost?
Buying a home can be expensive, like hair-raisingly expensive. There’s the cost of the deposit, a conveyancer, stamp duty, not to mention the new sofa and curtains you’ve got your eye on. Then there’s the cost of the mortgage.
We’re currently experiencing record-low interest rates. This might skew views of affordability, so it’s important to look at the pros and cons of fixed rates, tracker rates and variable rates when you’re comparing the different mortgages with your broker.
Remember, mortgages are like your favourite pair of jeans. Yes they might look cracking on you, but not such a great fit on your next door neighbour.
Whoever you choose to have your mortgage with, get an illustration. This will show you what your mortgage could cost you over the duration of your mortgage.
Want a personalised illustration? Speak to one of our brokers. Download the list and find a broker here )
Remember, for the first few years of your mortgage the balance might not seem to reduce – the majority of your monthly payments will be covering interest at the beginning of your term.
3. How do I know what is going on with my mortgage?
Just like monsters lurking under your bed, with the whole mortgage process, it’s the not knowing that’s scary. With some lenders, you can crunch the numbers, get together all the different documents you need, apply… then nothing. Silence.
The process can differ from lender to lender. It can be stressful digging out all those bits of paperwork then having an unnerving wait when you don’t know whether you’ve been accepted or not. Who’s even making that decision and what are they basing it on?!
Some lenders don’t tell you (or your broker) what’s happening with the application at each step of the process. This lack of communication can hold the process up and lead to frustrating delays without you even knowing what’s actually holding things up!
When you’re trying to buy a house, or have remortgage deadlines, knowing what’s happening puts you back in control. We understand that from when we’ve bought our own homes. So when you have one of our mortgages you also download the Atom bank app. That gives you an up to date timeline of events, so you’ll always know what stage your mortgage is at. No more eerie silence.
Watch the video to see how we keep you up to date with your mortgage application in our app.