- 1). Determine if you are eligible for the UK Government Mortgage Subsidy. Tenants of buildings owned by housing councils, those on waiting lists for subsidized housing and many government workers are eligible for special subsidized mortgages. If you are in one of those categories, contact the Homes and Communities Agency for more information. The Housing Corporation, which formerly handled subsidized mortgages, was closed in November 2008. Compare the subsidized mortgage rates to those that you might find online or through a bank to determine if they are a better choice for you.
- 2). Go to an online mortgage comparison website like one of those listed below in the references. Look for mortgages that apply to your area and try to find the best one for your credit rating.
- 3). Avoid sending out multiple applications without hearing a reply. Applying to for too many mortgages without first hearing a reply can damage your credit rating.
- 4). Contact your favored bank. If you conduct most of your business through a single bank, you may be eligible for a preferred customer mortgage rate. Negotiating with a bank loan officer may grant you access to better mortgage rates than applying for one online. Prepare documents demonstrating your financial situation and how a new mortgage will affect your budget to ease the process.
- 5). Compare the various mortgage types available in the UK. Self-certification mortgages charge higher interest rates but don't require extensive income documentation. Capped mortgages are variable-rate mortgages with a clearly stated maximum interest rate. Determine which mortgage type fits your needs the best while providing the lowest average rates over time.
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