Refinance

If your current mortgage deal is coming to an end, take the opportunity to switch to a lower interest rate while you can. Otherwise, you mortgage may revert to your lender's standard variable rate and you'll have missed the chance to take advantage of record-low interest rates.

Be Wary of Tracker Mortgages

If you are considering a tracker mortgage, which is tied directly to the Bank Rate, calculate if you can afford the extra monthly repayments if interest rates do rise.

Maintain Monthly Payments

Switching to a lower interest rate will result in a lower monthly payment. However, maintaining your existing payment, if you can afford to do so, means that you clear your mortgage balance more quickly and pay less in interest over its term. Your mortgage advisor can provide further information on individual deals.

Maintain Repayment Term

If you have been paying off your existing mortgage for several years, do not be tempted to restart your repayment term, typically 25 years, from scratch. Restarting from scratch may seem appealing, as it will reduce your monthly repayments, but it could also cost tens of thousands in additional interest over the mortgage term.

Check Your Credit Rating

Mortgage lending criteria remain stringent and are not expected to become any more flexible during 2013. The higher your credit rating, the higher your likelihood of being approved for a mortgage in the first place and the better the deal you are likely to be offered. Check your credit report for discrepancies before any credit checks take place.

Leave Your Credit Alone

Once you've applied for a mortgage, resist the temptation to use your credit cards for major purchases or take out any further credit, at least until the application is approved.

Shop Around

Mortgage interest rates may be lower than ever before, but that should not stop you from shopping around for the cheapest mortgage deal.

Look Beyond the Headline Rate

When comparing one mortgage lender with another, do not just consider the headline interest rate. Look at the arrangement fee and any "tied" products, such as buildings and contents insurance, which you may be obliged to buy as part of the deal.

Know Your Loan-to-Value

Loan-to-value, or loan-to-value ratio, is the term used to describe the proportion of the purchase price of a property that you borrow with a mortgage loan. The higher your loan-to-value, the higher the risk is for the mortgage lender, so lenders typically reserve their best deals for borrowers with loan-to-values between 60% and 70%. Once again, your mortgage advisor may be able to help you in this respect.

Concentrate on Your Deposit

Quite simply, the higher your deposit, the lower your loan-to-value and the better the deal you're likely to get from any mortgage provider. Concentrate on saving as much as you can for your deposit, even if means going without some luxuries for a time.

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