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Choosing a lender can be difficult. Regardless of what type of loan or the cost of it, you will also want to make sure that the lender you choose is a good one. You will therefore need to think about what you consider to be a good lender and what criteria you would use to judge them. Then you will be better able to make a decision about who might be the best for you.

Reputation

It is good to think about the reputation of the lender. Consider whether you have heard of them and what you have heard about them. Look at the company history, by reading their website and other websites and decide whether you feel that they are a company you would like to deal with. It may be that you want a company that advertises a lot and so is well-known, one that has been around for a long time or one that is fresh and young with new ideas.

It is very much a personal view as to what we see as a good reputation. It may be that we know a name and so think they have a good reputation but actually it may be because they were in the press for bad reasons but we just cannot remember those reasons. It could be we know a name because they advertise a lot, but that does not mean that they will be any better than a company that do not spend lots of money on advertising.

Reviews

Finding out what other people think about a lender can be a great way to help you to judge them. Obviously we all have different likes and dislikes, but if we find out that quite a few people have had bad experiences then it may make us decide to choose an alternative lender. It can be good to start by asking friends and family. They have no reason not be honest with what they tell you and they will be able to let you know of their personal experiences with different lenders and whether they would recommend them or not.

You should also be able to find information like this online. So if you are nor comfortable with asking friends and family or do not have anyone to ask then this can be an alternative. It can even be useful even if you have asked others. There will be money forums and message boards which have this sort of information. You will be able to find out more about what people think of different lenders and it should provide you with a lot more information that asking people that you know.

Customer Services

For many people, the way that a lender treats its customers is really important. If you have any questions or get into difficulties with repayments, then you want to be sure that there will be a polite, friendly and helpful person able to assist you. You will need to consider whether you would rather communicate face to face, on the phone, by email or online and whether the lender that you choose will be able to help you in this way. You should also get in touch with them so that you know what they are like to deal with. Ask them questions about the loan you are considering and see whether they seem helpful and kind. Remember to get in touch with them using the means that you think you would normally contact them using. Then you will get an idea of how quickly you will get an answer.

Ethics

For some people the ethics of a lender are really important. They want to choose one that does not invest money into things that they do not agree with. Some people will therefore purposely choose ethical banks. You can usually find out if they are ethical as they will tell you on their website, but you may want to do other online research as well, in order to find out for sure. There are not that many lenders that do claim that they are ethical though and so you may limit your choice this way. It may be that there are some that are better than others with regards to ethics even if they are not claiming to be ethical. It may also be that you have criteria on what sort of ethics you feel are important in a lender.

Products

Obviously you will need to pick a lender that has the articular products that you want. You will want to look at the price of those products and how they compare to other lenders. It could be that you will be prepared to pay a bit more if the lender fulfils other criteria that you have. You may though, not be able to afford to pay much more, so you might have to compromise on what you get from a lender if you cannot afford the best one.

There are so many lenders offering mortgages these days that it can be confusing knowing which one to choose. You may see adverts from different lenders all claiming to have the best deal and this can make things even more confusing as you can wonder how more than one lender can have the best deal for you. This is the solution though, you need to look at what you want and find the lender that matches that the best, the reason there are so many deals is because borrowers all have different requirements. Therefore you should think about the sorts of things that you think will be important to you. Below are a few ideas.

Interest rate

Most people will look first at the interest rate when they are comparing mortgages. This is important as it will determine how much your repayments will be. It is important to note the difference between fixed and variable interest rates. The variable interest rate will change frequently, usually when the base rate changes but sometimes at other times as well, depending on the specific terms of the mortgage. A fixed rate will not change for a certain period of time, this is usually a number of years. This can be advantageous as it will protect you against the rate going up if the base rate changes, but it will also not go down if the base rate goes down which means that it can sometimes be much dearer. You get tied in for a certain time period as well and cannot switch to a different lender without paying a penalty.

Although interest rates can be a good way to compare mortgages at one point in time, the rates change between lenders and within a few months you may find that there is a different lender that is more competitive. This is one reason why it is important not to just rely on interest rates as a guide to which lender to choose.

Other costs

There are other costs of a mortgage as well as interest rates. You will usually be charged an administration fee when you set up the mortgage and these can vary. You may be charged a fee if you want to make any overpayments, have a payment holiday or something like that as well. If you miss an interest payment or repayment then there will be a charge as well. It is worth looking into the various charges so that you are aware of them and think about whether there are any that you are likely to have to pay which could be significant when you are comparing the lenders.

Repayment amount

The amount that you repay each month is determined by a number of factors. The interest rate will determine the amount of interest, but also any costs that are added in as well as the term. The term refers to how long the mortgage is for. If the mortgage is for a longer time, then there will be more repayments than if it is for a shorter time, but the payments will be larger. You need to think about what you can afford with regards to repayments and make sure that you sign up to a mortgage deal that will be affordable for you. Try to consider whether you will be able to afford it in the future as well as right now.

Local branch

Some people prefer to use a lender which has a branch near to where they live. This is because they like the idea that they will be able to talk to staff if they have any problems or concerns. They may also just like the security of knowing that the lender is big enough to have branches.

Phone/online support

For some people having good phone or online support is important. If this is the case with you then it is wise to try out that support by contacting them and asking some questions. You will be able to judge them based on how well they answer your queries and how polite and friendly they seem to be towards you.

Getting advice

when you are looking for a first time mortgage then it can be really hard. There are so many options, different types of mortgages and different lenders that it can be wise to ask for help. You could speak to friends and family that have got mortgages and see what criteria they looked at when they were choosing theirs. You can also consider using the services of a financial advisor. These will cost money and when you are looking for a mortgage, you will probably be cutting costs wherever you can and so may think that this is too expensive. However, a good financial advisor could end up saving you a significant amount of money and so it is well worth considering using one.