It’s almost Pancake Day, so here is our argument for why making pancakes is just like applying for a mortgage

• The bigger the pancake, the tougher it is to finish.

The first thing you should consider before applying for a mortgage is affordability. Work out how much you want to borrow and how much you can realistically afford to pay back every month.

The bigger your mortgage is, the longer it may take you to pay it off, not to mention you may have larger monthly repayments that could put a strain on your disposable income.

• Pancakes are flexible: you can make them for lunch, desert or a mid-afternoon snack.

Think of pancakes when it comes to picking your mortgage: You want a flexible mortgage deal that will allow you to take repayment holidays, overpay or underpay when you need to. You’ll be able to make your mortgage repayments suit your needs and should you have a crisis, you’ll have plenty of breathing room.

• The sweetest most attractive pancakes could be the worst for you in the long run.

Mortgages are products, so an attractive incentive might be offered with the mortgage deal, such as a free valuation or having your legal fees paid. However, these incentives are sometimes not free at all and are cleverly worked into the total cost of your deal, so make sure you read the small print!

• The perfect pancake requires patience, time and precision.

Mortgage applications may take a long time to complete before you can sign on the dotted line and you need to take time to read through the detail in the application.

Rushing a mortgage application could mean you miss warning signs, like exit fees, and that leads us onto our next point…

• Pancakes often stick to the bottom of the pan making them difficult to move.

Beware of the cost of any exit fees when you’re applying for a mortgage. These are the fees you will be charged if you want to change lender before your mortgage deal ends and they can be very costly.

Big exit fees make it difficult for you to be flexible in a volatile market, so you could be stuck with an out of date mortgage.

• You can add fruit to a pancake to make it healthier.

It’s important to make sure you get the best rates and lowest payments possible; you can do this by saving up a bigger deposit. The more money you add to your deposit the ‘healthier’ your mortgage deal could be and the easier it will be for you in the long run.

Make sure you save up a substantial deposit so your mortgage doesn’t put too much strain on your finances and your credit score.

Article sourced from financial blog on Noddle website website on 27th Feb 2017 . Original full article can be viewed by clicking link below

https://www.blog.noddle.co.uk/finance/why-applying-for-a-mortgage-is-just-like-making-pancakes/

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Mc Daid Mortgages do not accept responsibility for any advice provided or opinions expressed with this article. This is for information purposes only.

Your home may be repossessed if you do not keep up repayments on your mortgage.