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20. Avoid bridging finance
Someone once said bridging finance is so called because it allows you to "pylon" the debt. The joke's appalling, but so is bridging finance. Unless you get your timing right you could find yourself with two home loans at the same time - with the bridging finance element costing you an extra couple of percent premium on the standard variable rate. Consider using a deposit bond or selling before you buy, as it will be much more cost effective for you than another loan.21. Choose the loan that suits your needs
Choosing a loan is about knowing what you want. Draw up a table of potential home loans and rank them. Make a list of all the features that are important to you and rank them according to importance. Give each feature a score out of 5 - one for unimportant right through to 5 for indispensable. Use this technique for ranking the loans on offer and pretty soon you'll see the one that's right for you. Remember, different loans have different purposes so you need to match a loan to your need. Taking out an interest only loan suitable for investors if you are planning to live in the house is just foolish. Ditching the features you don't need can save you up to 1 per cent on the interest rate of your loan. Over 25 years that's a whole lot of money you've just saved yourself.22. Don't be afraid of smaller lenders with cheap rates
Since the advent of the mortgage managers over the past five or six years there's been a lot of talk about smaller and "non-traditional lenders" and how they have forced interest rates down. With the property boom, plenty of opportunities sprang up for smart lenders with low fees willing to take on traditional lenders and many have done very well indeed.Some borrowers worry about what might happen if their lender gets into financial trouble. Keep in mind that you've got their money - so don't worry too much. There are some smaller lenders whose names might not be reqdily familiar but whose rates might be enough reason to get in touch. 23. Find out if your profession will get you a discount
Some lenders offer discounts to specific professional groups or members of professional organisations. Ask your lender if your occupation qualifies you for any discount. You might be pleasantly surprised.24. Buy the next issue of Your Mortgage Magazine
Information is your greatest weapon against the mortgage monkey, which has taken up (or is about to take up), residence on your back. By staying informed about what is going on in the home loan market, you might be able to stay a step or two ahead of your lender. And if you can stay one step ahead, you are already on your way to paying of your mortgage faster.Go to page: 1 2 3 4 5
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