Do Your Homework - Find the Mortgage That Fits Your Lifestyle and Your Budget

You've been looking at houses for months, and finally you've found it--the house that's just right. So now, all you have to do is to purchase your new home, move in, and get settled, right? Not quite. There's one more big step to go-getting a mortgage loan. You're going to want to decide on the type of mortgage and payment terms that fit within your budget. And you're going to have to prepare yourself by doing some research. What follows is valuable information that will be crucial in helping you make loan decisions that will fit your budget and circumstance.

Series: 3 Finding a Perfect Match for your Home Mortgage

Factors That Affect Your Mortgage

Mortgage payments are determined based on the following criteria:

Amount of the loan

Length of the loan

Down payment

Discount points

Closing costs

Credit quality

Income level

Lock in period

Loan Amount: The amount of your loan can increase your interest rate if the amount financed exceeds the conforming loan limits set by Fannie Mae and Freddie Mac, (private corporations regulated by the federal government) that administer loans. The conforming loan limit changes at the beginning of each year.

Shorter loans, such as a 30 year or 15 year note, can save you thousand of dollars in interest payments over the life of the loan, but your monthly payments will be high. An adjustable rate mortgage may get you started with a lower interest rate than a fixed rate mortgage, but your payments could get higher when the interest rate changes.

Down Payment: A large down payment will give you the best possible rate. If you've got the cash now and want to lower your payments, you can pay points on your loan to lower your mortgage rate. The concept is simple: In exchange for more money upfront, lenders are willing to lower their interest rate, cutting the borrower's payments. Remember to consider upcoming expenses and closing costs in your down payment decision.

Closing costs. In addition to your down payment, you will need to pay closing costs for processing your loan and transferring the property ownership from the seller to you, the buyer. Closing costs can range from 3%-5% of your loan amount, depending on where you live, the loan you choose and your closing date. In some cases, you can finance certain closing costs in your mortgage loan. When you apply for loan, your lender will give you an estimate of closing costs, which usually include:

Origination fees.

Costs of processing your loan (includes property survey and appraisal).
Items paid in advance, such as first-year mortgage insurance premium, first-year hazard insurance premium and first-year flood or earthquake insurance premiums, if required.

Escrow accounts – an account held by the lender into which the homebuyer usually pays for city/county property taxes, mortgage insurance, and hazard insurance, if required.

Title insurance charges.

Recording and transfer charges.

Attorney's fees.

Credit Score: Your credit and debt-to-income-ratio affect the terms of your loan through your FICO score which is used to determine your credit rating. If you have good credit and your monthly income exceeds your monthly debt obligations, you will get approved at a lower interest rate. However, if your monthly income barely covers your minimum debt obligations, you will not receive the lowest available interest rate even if you have a good credit report.

Lock-in Rate: When shopping for a loan remember that interest rates change frequently. It is important to ask your mortgage representative if a lock-in rate is possible. This will guarantee you a specific rate, provided the loan is closed, with a set period of time.
Determine How Large a Monthly Mortgage Payment You Can Afford

Your choice of mortgage will be influenced by questions such as
How many years do you expect to live in your new home?
How important is it to be free of mortgage debt before facing your children's college bills or planning your future retirement?
How comfortable are you with the certainty of a fixed mortgage payment vs. a payment that can change over time?

Your monthly payment will vary depending upon the type and length of the loan and the amount you put down. Most lenders will help you select the loan that's best suited to your financial situation.

How Low an Interest Rate Can You Expect?

Shorter term loans offer lower interest rates and are divided into two types. A Fixed mortgage means that the rate is locked in for the life of the loan. Adjustable Rate, also called an ARM or variable rate note, is a note that generally offers lower payments for the first year and then changes periodically based on the terms and conditions of your note. Paying discount "points" can lower your interest rate. If your loan requires you to pay points or if you want to buy "down" the interest rate using points, remember that one point equals 1% of the loan amount.

Choosing the Right Mortgage

If you want the stability and predictability of a set rate for the life of your loan, then a fixed rate mortgage may be for you. Usually the longer the term of the mortgage, the more interest you pay over the life of your loan. Though, a longer term means your monthly mortgage payments will be less than they would be with a comparable shorter-term mortgage.

30 year vs. 15 year fixed rate mortgage.

A 30-year mortgage will have a lower monthly payment and a higher interest rate than a 15-year mortgage. You'll have a smaller monthly obligation but you'll pay more for your house over time because you're paying it off with interest for a longer period.
On the other hand, a 15-year mortgage will have a higher monthly payment and a lower interest rate so you'll pay less for your house because you're paying it off in a shorter period.

Adjustable Rate Mortgage.

ARMs, are short-term fixed-rate loans: After the fixed rate term is up, the rate adjusts at regular intervals in accordance with current interest rate conditions at that time. A 5/1 ARM, for example, has a fixed rate for five years and then adjusts every year for the next 25 years. (ARMs typically run on a 30-year schedule.)

The length of the fixed-rate term on an ARM typically can range anywhere from one month to 10 years. The longer the rate is fixed, the higher the interest rate you'll get. But generally speaking -- and there have been exceptions in the past -- ARMs will cost you less in the short-term. With the ARM, both your monthly payments and interest rates should be lower than either a fixed rate 15-year or 30-year mortgage.

The risk with an ARM is that when interest rates rise, you could end up paying much more than you bargained for. Check to see if your ARM has a cap rate so that if rates increase, your change cannot exceed a certain pre-defined limit.

If you know you'll be in a home for 12 years or more, a 30-year fixed rate mortgage might work better for you than, say, a 5/1 ARM, where you fix a rate for five years and then it adjusts every year after that. But if you think you won't be in the home longer than five or six years, a 5/1 ARM might make more sense.

Mortgage Shopping Tips.

Talk to the mortgage specialists at your bank. If you are starting to look for a home they can asses your financial situation and help you determine a purchase price that is within your budget and a mortgage program that suits your lifestyle and income. In many cases your advisor can prepare a pre-approved mortgage before you finalize your purchase.

Ask a mortgage specialist at your bank to help you calculate payments at different interest rates. This will help you determine a monthly payment that can be comfortable integrated into your budget.

Types of Mortgage Programs.

Most lenders are committed to ensuring that your home financing experience is rewarding and effortless. To this end, there are many programs available to suit a variety of situations, lifestyles and your financial profiles. These include:

Fixed-rate loan. If you've found a home you plan to live in for 10-30 years, consider a fixed-rate loan. It's predictable and stable since the interest rate is set for the full length of the loan. Because the monthly payment for the principal and interest stays the same for the life of the loan, it's easier to plan a budget. Most lenders offer many fixed-rate loans with terms to fit your budget, including loans that require no money down.

Adjustable-rate loan.

If you plan on being in your home for a shorter period of time, or expect your income to increase of the years, an adjustable-rate mortgage (ARM) may just be the right fit for you. An ARM loan usually starts with a lower initial interest rate than traditional fixed-rate loans. After a set initial payment period (usually one, three, five, seven or ten years), the interest rate may change periodically (usually annually or semiannually) based on market conditions. As the rate changes, your monthly payment changes. ARM loans feature an adjustment "cap" which limits how much the interest rate can go up. This helps protect you from large increases in your monthly payment.

Loans for first-time homebuyers.

Most banks offer affordable loans to make it easier for first-time homebuyers with limited savings to qualify for a home loan. Specifically, FHA and VA government loans are available to qualified buyers, based on income or property location. These affordable financing programs can help make it easier to buy a home since they require little or no money down and also offer flexible credit and income guidelines.

Repayment schedule.

Also consider how quickly you'd like to repay your loan – within 15 years, 20 years, 25 years, 30 years? Do you want to make biweekly mortgage payments? Typically, the sooner you repay the loan, the more you'll save in interest payments. However, the longer you extend the term of your financing, the lower your monthly payments maybe. So when choosing a loan term, consider your budget, your long-term spending patterns, your income over the life of the loan and how long you plan to stay in your home.

Which loan is right for me?

The lifestyle situations below can help you decide which loan you might want to consider.

"Getting the lowest monthly payment is most important to me, and I'll be in my home for less than five years."
An intermediate ARM (five years or longer) if your income is fixed or expected to decline.
A short-term ARM (three years or less) if you expect your income to increase.

"Getting the lowest monthly payment is most important to me, and I'll be in my home for more than five years."
A fixed-term mortgage (for example, 30-year fixed).
An intermediate ARM if you expect your income to keep increasing.

"I have little money saved for a down payment."
AN FHA loan.
A VA loan, if you are a veteran.

"I have no traditional credit references (for example, car loan or credit cards) but I pay my rent and other bills on time."
An FHA loan.
A VA loan, if you are a veteran.

"Paying off my mortgage faster and saving money by paying less interest long-term is what's most important to me."
A shorter-term mortgage, such as 15- or 20-year fixed-rate loan.
A biweekly 30-year mortgage accelerates the reduction in principal by applying more than one extra payment a year, reducing the total interest and term of the loan

Borrowers Protection Plan

Borrowers Protection Plan is an optional feature of your loan that can provide peace of mind during difficult times – like an unexpected job loss or disability. Borrowers Protection Plan will cancel your monthly principal and interest payment should you lose your job or are unable to work due to illness or injury. Borrowers Protection Plan may cancel a total of up to 12 months, depending upon the protection option and benefit period selected. And if you should die in an accident your entire loan balance will be canceled.

Benefits of protection.

Affordable. Decide what you and your family need and we'll help make it affordable.

Easy to obtain. There are no health requirements or medical exams and any size loan qualifies.

Supplemental benefits. Your monthly benefits will not be reduced because of other state unemployment benefits or disability income you may receive.
Protection options available prior to loan closing include involuntary unemployment and disability and can be purchased individually, or as a combination. These options also include accidental death protection and are available on a single or joint basis.

Fast answers and streamlined processing. The approval process should be fast and simple. Many homebuyers who have excellent credit history can be approved for a mortgage at the time of the application and with very little documentation.

Hassle-free mortgages with 80% less paperwork.

Use a proprietary process to determine if you qualify for this streamlined loan feature. This means less digging, sorting and collecting paperwork for you.

Your qualification for reduced paperwork depends on a number of factors:
Strong credit — doesn't have to be perfect
Type of mortgage you choose — many mortgage types and loan amounts up to $750,000 are eligible
Even if you don't qualify for the 80% less paperwork mortgage feature, your mortgage request can still be approved.

Buying a home is one of the most important events in your life. So talk to the mortgage professionals, do your homework and select a loan that fits your lifestyle and your budget. And enjoy the satisfaction of owning your own home.

Mortgage Free In 15 Years!

Imagine paying your mortgage off in 15 years! Think of all the great things you could do with that extra money. What would you do? Retire early? Buy an R.V.? Travel around the world? If you could eliminate your mortgage in half the time, then your options would be wide open.

Let's take a look at 3 benefits and 3 considerations when evaluating whether or not the 15 year fixed rate mortgage, is right for you:

1. Lower Interest Rate
2. Huge Savings on Interest Paid
3. Mortgage Paid in 15 Years
4. Affordability
5. Expendable Income
6. The 15 Year Loan as an Investment

1. Lower Interest Rate:

The 15 year amortized fixed rate loan carries a lower interest rate.

• The interest rate is usually about ½ % the rate of a 30 year term.
• For example, as of today's date, the average 30 year fixed is going for about 5.67%, while the average 15 year fixed is going for about 5.10%.
• That's a savings of .57%!

2. Huge savings on Interest Paid:

Do you want to save a ton of money? A 15 year fixed will accomplish this for you.

• Let's look at a $300,000 loan. Over the course of 30 years, at 6% interest, you will pay the bank $347,514 in interest. (Yes that's right. You're paying the bank 115% of the loan value, over the course of 30 years).
• However, with a 15 year fixed rate loan, at 5.5%, you will only pay $141,225 in interest (Wholly smoke! That's a savings of $206,289!).

What would YOU do with $206,289?

3. Mortgage Paid in 15 years:

Because the loan is amortized for 15 years, instead of 30 years, your commitment to the bank is cut in half.

• This is an enormous advantage. After 15 years, money normally applied to a house payment can be applied to investments.
• Or, you can begin considering alternative careers, retirement, or home improvements.
• Or you can just spend that extra money on fun stuff and goodies.

Any way you look at it, cutting your commitment down to 15 years affords you many more options in life.

So we've established that a 15 year loan clearly has some amazing benefits. But, is the 15 year loan right for you? Let's take a look at some important considerations:

4. Affordability:

Even though the 15 year fixed rate loan enjoys a ½% savings in interest, there is still the question of affordability.

• For example, a $300,000 mortgage, amortized over 30 years at 6%, equates to a monthly house payment of $1798.
• But the same loan amortized over 15 years at 5.5%, equates to a monthly house payment of $2,451.
• That's an extra $653 per month, or a payment that's 36% higher than a 30 year fixed.

Can you afford the long-term commitment of a 15 year fixed rate loan?

5. Expendable Income

The 15 year fixed rate loan is an important consideration if you have extra income and you are looking to apply it somewhere. Ask these important questions:

• Are all your bills getting paid?
• Do you have low debt?
• Are you spending too much each month on luxuries?
• Are you spending too little each month on productive investments and savings?

If money's got you down, and things are tight, and if there are other financial areas for you to explore first (such as paying off credit cards), then perhaps the 15 year loan may not be right for you, at least not right now.

Start by completing a budget analysis, and figure out a plan to get you from point A to point B.

6. The 15 Year Loan As An Investment:

This is really, the most important consideration. A 15 year fixed rate loan is more of an investment then anything else.

• The financial benefits of a 15 year fixed rate RIVALS the benefits of a 401k, Roth IRA, and Mutual Fund performance.
• You need to compare the money saved (in our example, that's $206,289) to the performance of your other investments in your portfolio. Remember to calculate in the extra money you are paying for the 15 year loan (in our example, that's $653 per month), so that you can determine a net profit.
• If you are exploring ways to build wealth, and apply your money in a productive way, then you need to seriously sit down, and figure out how to get a 15 year loan incorporated into your plan.

Remember, money saved, is money earned!

We've enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.

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Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

About The Author Copyright 2005, by LoanResources.Org , This article is available in full format at: Mortgage Free , Tom Levine provides a solid, common sense approach to solving problems and answering questions relating to consumer loan products. His website seeks to provide free online resources for the consumer, including rate-watch, tips and articles, financial communication, news, and links to products and services. Article Source: http://EzineArticles.com/?expert=Tom_Levine

Bad Credit Mortgage Lender - What to Look For

If you have less than perfect credit and are looking to get approved for a mortgage loan, be careful not to make some common, costly mistakes. When dealing with sub-prime mortgage lenders or bad credit mortgage lenders, many people are taken advantage of because of their eagerness to get approved.

Choosing and settling on a mortgage lender or mortgage broker is a very important decision. Make sure you don't make mistakes that you will regret later.
Ask yourself, the mortgage broker or lender these questions before you sign on the dotted line:

1. Is there a pre-payment penalty on the loan? Ask about this as soon as you are told you are approved. A 6 month pre-payment penalty is probably ok, but 1 year, or two years? Over 1 year is too long. Find out how much the pre-payment penalty is. Maybe its not much. But if there is one, its most likely to be so much, that it would defeat the purpose of refinancing the loan before the penalty time is up. If you are get a mortgage loan with a poor credit score, and then make your mortgage payments on time, you are likely to be able to refinance in 6 months to 1 year for a much better interest rate. You don't want to hurt your chances of doing that with a heavy pre-payment penalty. Sometimes brokers will neglect to tell you about one.

2. What will the interest rate be? Sounds obvious, but lock down exact numbers. Don't settle for vague answers on this. Brokers may promise you a low interest rate, but as it gets closer, end up locking you in at a much higher rate. If you are doing a combo loan, 80/20, the second mortgage may end up being the one that has an interest rate that surprisingly jumps up as it gets close to the loan closing. Try to negotiate a lower interest rate, especially if you are going through a mortgage broker, they will usually have some play in this area.

3. Is my mortgage broker being too pushy? If you feel your broker is being too pushy, there may be something in the loan that is not in your best interest. Ask a lot of questions and don't be afraid to start searching elsewhere. When getting a mortgage loan, you don't want to be in too big a hurry.

4. Can I afford the payment even I am not able to refinance for a lower rate within 2-3 years? Many people get into a sub-prime mortgage loan with a higher interest rate, just because they are happy to get approved, only to feel suffocated later, when they cannot refinance and get out from under the high payment. If you don't think you could make the payment for at least the next 2-3 years with no problem, then you shouldn't be getting into the loan.

5. What are my closing costs going to be, exactly? Bad credit mortgage lenders and mortgage brokers know that the person they are extending the loan to doesn't have as many options. These lenders and brokers can sometimes take advantage of that fact by upping the fees at closing. Make sure you see what all of your fees are going to be in writing before you commit to the loan. Compare those fees with other lenders and make sure they are comparable. If there are a little high, try negotiating with your mortgage lender or broker. They will usually be able to make changes there if they choose to.

It helps to choose a bad credit mortgage lender based on a
referral based on a referral, one who has a good reputation. Choose a company with a long standing reputation and make sure you feel comfortable working with them.

There are many lenders now, who specialize in bad credit mortgage loans. These are the best lenders to start with.

Written by Carrie Reeder, owner of http://www.abcloanguide.com, an informational website on mortgage loans, with articles and lists of recommended bad credit mortgage lenders. Article Source: http://EzineArticles.com/?expert=Carrie_Reeder

Mortgage rates are still too high

Mortgage rates have dropped a lot in recent weeks, which is a good thing. But there’s still a huge spread between mortgage rates and rates on federal debt. Here’s the spread between conventional 30-year mortgages and 10-year Treasuries (10-year because most mortgages get paid off early, when houses are sold, and the average duration is about 10 years.) This spread was historically stable at about 150 basis points, but has been nearly double that lately

Why is the spread so high? Presumably because investors are still seeking the safety of government bonds. But what’s bizarre is that these days the government is the dominant mortgage lender, in the form of Fannie and Freddie, which have been nationalized for all practical purposes.

The persistence of the spread offers one opportunity for quick economic stimulus: declare that Fannie and Freddie are backed by full faith and credit, and if that doesn’t work, have the Treasury borrow on their behalf. This can bring mortgage rates down by more than 100 basis points. By itself, that’s not nearly enough to turn the economy around, but it could really help the economic recovery package.

source nytimes.com

Cash Loans for Unemployed: Designed for Needs of Unemployed People

Getting a loan is very easy if a person has a regular source of income. But same is not true for unemployed people. Lenders in general are reluctant to provide loans to unemployed people. So isn't there any way through which unemployed people can meet urgent requirements? The answer is cash loans for unemployed.

The most important characteristic of cash loans for unemployed is the speed and swiftness with which they are disbursed. These are mostly unsecured in nature which implies no collateral has to be placed against the loans amount. Moreover credit ratings are also not given much attention.

The amount associated with these loans is not much with these loans which can stretch up to $1500 and these are very short termed loans. These loans do what payday loans do for employed persons. As payday loans suffice the employed persons with money between two paychecks so do cash loans for unemployed since they provide money for the brief phase of unemployment.

There are some advantages which need a mention. They are as follows

" Theses loans are available to bad credit borrowers.

" No discrimination is practiced concerning employed or the lack of it which nullifies the general perception.

" These are very swift to avail and in most of the cases the amount is disbursed within 24 hrs.

Repayment is an issue one should not casually deal with. Because faltering in it may prove as a blockade if one requires money from loaning market in future.

Cash loans for unemployed can be found online or in the physical market. However online procedure eases all the process of availing loans as everything can be managed sitting before a computer.

Get More Information Read The Credit Secrets Bible - Secrets Everyone Should Know

Bad Credit Loans: All Your Wishes Come True!

Nothing is permanent in life, including finding yourself in a bad financial situation. You can have a bad credit rating due to several factors, such as loss of job, irregular and late repayments, and credit card debt. In such a situation, bad credit loans are like an oasis in the desert providing the much-needed money for your various needs. Bad credit loans can be used for emergencies due to hard financial circumstances or for leisure. Moreover, such loans are available even to those people who have bad credit or no credit.

Anyone can face credit problems at some time or the other in his/her life and bad credit can happen at any time due to various factors. Even the most financially sound people can suffer from bad credit and if this happens, you should try to get a bad credit loan to tide over your financial predicament.

There are two types of bad credit loans: secured bad credit loans and unsecured bad credit loans. Consumers prefer the unsecured type as they do not have to put up any guarantee, although both the types are popular.

In the case of a secured bad credit loan the borrower has to put up some property like a house as a guarantee against the loan. This is a very risky proposition as the borrower can lose the property in case of default in the repayments of the loan. Moreover, if the borrower does not make payments on time, the interest rates would also go up considerably.

An unsecured bad credit loan, on the other hand, does not need the borrower's asset as a guarantee against the loan. Normally the borrower can get a loan of tens of thousands of dollars. The lender would, however, scrutinize all the credit card bills of the borrower before granting the bad credit loan.

Bad credit loans are offered by many banks, credit unions, business merchants and financial institutes. As such, if you need money for buying a house, a car or for any other financial exigency and if you do not have a good credit report, you can easily get a bad credit loan to fulfill your needs.

Applying for a bad credit loan is not at all difficult and things have become much faster due to the Internet. There is no need anymore to go to a lender nor do you need to stand in long queues to talk to the lender. All that you have to do now is to click on your mouse and a multitude of websites will be available for you to study and decide the one for getting a bad credit loan. Many loan schemes will be available on the net and it is necessary for you to study the terms and conditions of each agency. When you have selected the right agency, you should fill up the online application form. A loan officer will assess your form and will let you know by phone or e-mail about the approval of the loan. If your loan is approved, the money will be credited to your bank account.

As there is no asset to guarantee an unsecured loan, it is normally in the form of homeowner loans or tenant loans. Moreover there is greater risk to the lender in the case of unsecured loans as there are no assets which the lender can claim in case of default by the borrower. It is for this reason that lenders normally charge a very high rate of interest for unsecured loans.

Before choosing a bad credit loan, it is better for the borrower to shop around a bit in order to find a very good deal. Moreover, it is advisable to consult a specialist who can guide you properly and give valuable suggestions so that you are successful in your quest for a loan.

get your credit secrets bible and help yourself out of debt within 6 months

six super mortgages

There is no such thing as the best mortgage, or even the best type of mortgage. On this website and others you will find contradictory articles and advice debating the issue. Some people think tracker mortgages are the best thing since sliced bread (myself included) while others believe that fixing now is the right course of action (and they are wrong).

Ultimately, it doesn’t matter what any of us think, because the right mortgage is the one that suits your needs, your attitude to risk and your financial circumstances.

There is absolutely, categorically, in no way whatsoever a best mortgage.

However......

There are some good deals within their categories and below is a selection of six of my favourites. I can guarantee that Fools will be able to find some deals with lower rates than my choices. In some cases I have gone for a good balance of rate, loan-to-value and upfront fee to suit those with more modest mortgages. Those products with incredibly low rates are probably more suitable for large loan borrowers, or they are only available to people with a whopping deposit.

There’s a mix of fixed, trackers and discounted rates, none for those with a bad credit history (that’s a whole other feature) but a few self-cert deals.

They are all available at time of writing but in the current market they may not be about tomorrow.

The tracker
My pick of the bunch. HSBC has a lifetime tracker at 5.99% (0.99% above Base Rate).

It comes with no arrangement fee and unlimited overpayments are allowed. Plus it’s portable and is available to those with just a 10% deposit. It also has no early repayment charges. What more could you want?

Well, if you want a similar deal at a slightly lower rate, Woolwich’s fee-free lifetime tracker is currently 5.89%. However, you need a 40% deposit to secure this one.

The discounted variable rate
Again HSBC leads the field on discounted variable rates with its 5.69% two-year discount, reverting to a (current) rate of 6.25%. Available to up to 90% loan- to-value this is suitable for first-time buyers or those with little equity in their property and comes with a teeny weenie £249 fee. If you want an even better rate and you can afford to pay a fee of £2,499, HSBC is offering a two-year discount at just 4.99%, or one at 5.49% with a £999 fee.

The short-term fixed rate
First Direct’s two-year fixed rate of 5.98% is a good rate but with a high-ish fee of £1,499 plus £499 booking fee. It’s available to those with a 20% deposit and is an offset mortgage so customers can use savings and current account credit to offset against their mortgage debt. The bank also offers a slightly higher rate -- 6.39% in exchange for a much lower fee of £399 plus £99 booking fee.

Market Harborough Building Society has a great two-year fixed rate, low fee deal. Its 5.99% two-year fix is available up to 80% loan-to-value on mortgages up to £300,000 with an arrangement fee of £749.

The long(er)-term fixed rate
Fixing for the longer term at today’s high rates is an option that few borrowers will currently be comfortable with, but if that’s what you fancy my money is on Leeds Building Society’s low rate five-year fix at 5.99%. Available to those with a 20% deposit it carries a £1,499 fee and is available on mortgages up to £250,000.

If you have a small deposit still but want a long-term fix, Britannia Building Society’s five-year rate of 6.74% goes up to 90% loan to value, with a low fee of £499.

The large loan
Stealing the march on large loans at the moment is a Charcol exclusive at just 4.99% -- that’s right, under 5%. This loan is targeted at extremely high-net-worth borrowers -- £500,000 minimum to £5m. In addition it comes with a stinger of a fee, 2.75% of the loan, which will amount to tens of thousands of pounds. But if you are borrowing big, it could be worth it for the excellent rate. Another stipulation is that you need a 35% deposit.

For a large loan with a much smaller fee Bank of Scotland has a three-year tracker at 6.19% with a fee of just £1,499. It is available to those with a 25% deposit or more on loans over half a million pounds, and must be arranged through a mortgage broker.

The self-cert deal
Self-cert deals, for those who cannot or prefer not to have to prove their income, are much more expensive than mainstream deals.

Bank of Scotland’s five-year tracker is competitive at 6.69% up to 75% loan to value, and comes with a fee of £999 of the loan, which is not bad at all for self-cert lending.

Fixed rates come in at around 7.39% and Bristol & West offers a five-year fix at this rate with a 1.5% fee. Again you’ll need a 25% deposit. The lowest self-cert rate I could find was a two-year tracker at 5.99% from Nationwide brand The Mortgage Works (available through brokers) but comes with a whopping 2.50% fee and you need a 50% deposit.


source http://www.fool.co.uk/news/property-home/mortgages/2008/07/17/six-super-mortgages.aspx