Why Mortgaging with Your Own Bank is Usually a Bad Idea

Many people view securing a mortgage as a difficult and troublesome thing. For this reason, they panic when it is time to organise one and just go straight to their own bank, forgetting to check out what else is on the market. If you are looking forward to your next move, whether that's a new home in this country or a property abroad, we urge you to consider looking further afield to help you find the best deal. Read on to find out exactly why mortgaging with your own bank might be a bad idea.

Most people shop around for financial services but are happy to just go to their own bank for mortgages.

Firstly, it just makes sense to shop around. You would shop around for anything else. You wouldn't, for instance, buy a product without doing your research and seeing if you could find it cheaper somewhere else. Likewise, you wouldn't choose insurance or any other financial product without first seeing if you could get it cheaper elsewhere. Why then do we panic and go straight to our own bank for a mortgage without seeing if anybody else can offer us favourable rates? Always do your research and find out of you can do better elsewhere. Remember that to get the best mortgage rates you need a great credit score. There is plenty of advice regarding increasing your credit score online.

Shopping around almost always gets home buyers a better deal

To get the best deals it is essential to shop around. If you go straight to your own bank, they know that they have you. They don't have to offer you competitive rates because as a loyal customer, they suspect that you will go to them and neglect to look to see what else is around. Don't fall foul of this, spend some time looking for the best offers before you go to your bank then you will at least know if they are competitive. Not shopping around would be a big mistake, why not take a look at our post detailing other mistakes that first-time buyers often make.

If your situation is pretty straightforward you can use an online comparison service

Online comparison services are a great tool when it comes to shopping around for the best mortgage deals. If your situation is straightforward, you can pretty much see at a glance what your best offers are, without much input on your part. Why not give Money Expert Mortgages a try? We're sure they will be able to find you a great deal.

If it’s more complicated (such as being self-employed) it’s better to go to a mortgage broker.

Online comparison tools are great but when the situation os a bit more complicated, if you are self-employed for instance, it might be better for you to go to a mortgage broker. The algorithms used by comparison tools often can't cope with more complicated information but a broker has the capacity to deal with any peculiarity. Research some questions to ask to help you find the perfect broker. A good broker will help you secure the best deals and guide you through the entire process.