Articles:
Where to look for a second home mortgage
SB May 2007
You have made the decision to take the plunge
and go for a second home. But you are going to
need a
mortgage. How do you go about finding one?
The first requirement is to find someone who
really knows the situation and understands the
special requirements of a
second home mortgage. You have a number of
options.
Your existing lender.
For many people this is the first port of call. You
already have a relationship with them and it
is often easier to stick with the familiar.
The thing to remember is that the fact that
they have provided a mortgage on your first
home doesn’t mean that they have the
expertise to help you with the ins and outs
of a
second home mortgages. They may not be
the most suitable if they don’t normally do
this sort of lending.
The Yellow Pages.
Many people start their search for a lender
in the Yellow Pages. There are certainly
plenty of providers listed there. The
problem is that most of them don’t make it
clear in their ads whether they actually
provide second home mortgages or not.
Phoning them all to find out can be
extremely time consuming – and expensive!
The Internet.
Of course this is an increasingly popular
way of looking for a second home mortgage.
If you find a possible lender you can fill
in a form and in many cases you can obtain
an “instant” quote. And there is no limit
to the number of quotes you can obtain, so
you can compare them. It is tempting to
take what appears to be the most favourable
quote and run with it. But of course what
you have to remember is that the quote is
actually provisional - they don’t know
anything about you or your circumstances
when they provide it. All your information
has to be checked out and the quote may well
change.
Independent mortgage broker.
This is another option you can use. There
are two advantages of using an independent
mortgage broker for advice on your second
home mortgage. First, he or she can gather
a full understanding of your situation
BEFORE recommending a product that will meet
your exact needs. So there are no
“provisional” quotes or acceptances – you
know that the quote you receive is
accurate. Secondly, the broker has access
to a vast array of lenders and can select
the one that is right for you - so you don’t
have to waste any time hunting around.
A second home mortgage is a major commitment.
You need to be sure you get the best possible
advice, so that you can find the product that
best meets your needs.
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