If you are contemplating purchasing your first home, moving house or remortgaging, which way do you take through the mortgage forest, light the path and find the best deal for you?

Way 1... D.l.Y
Before entering the Forest: - 
Park cab, find torch and do a self-assessment check. The choice of mortgage will reflect your personal circumstances, preferences, and aspirations. Cost (and possible future costs dependent on interest rate changes), overall affordability and flexibility will be major considerations.

Finding the Path - A small illumination may now have occurred enabling a path to be chosen between the main Fixed, Discounted and Capped mortgage routes.
   Exercise caution and take time to fully understand all options and main issues to ensure choice of mortgage is correct. Remember that cheapness of rate may not equate with the most economical, or provide the most appropriate, product.

Mortgages:- "Like Night in the Forest"

Lambeth Building Society

* Fixed - A Fixed rate for a given period at the end of which the interest rate reverts to the lenders current standard variable rate (SVR). Ideal for those who wish to know specifically the amount of their mortgage payment in order to budget.

* Discounted - A discount off the SVR for a specified period with payments that can reduce if rates go down, or increase if rates go up. At the end of the discount period, the interest rate reverts to the lenders SVR. Discounted rates are most suitable if an increase in income is expected in the near future.

* Capped - For a specific period the rate is set at the capped level, but if rates go below the capped rate the lenders lower SVR is charged. This product enables the borrower to budget initially with the possibility that the mortgage payments will reduce if interest rates fall.

Ensuring you last the Journey - Check before proceeding that you can afford to travel and have sufficient income to pay mortgage costs on the way by reviewing mortgage payment illustrations.

Proceed on Way - Select lender and pick up mortgage en route (avoiding any nasty pitfalls further along).

Alternatively...

Way 2 ...
GET A GUIDE
Seek help as soon as the forest is sighted and contact a professional loan arranger at the Rangers house (who might be at a Building Society or Bank branch) or other lender accessible by a call (telephone direct or internet).

Arrive at Home Sweet Home

Way 3 ... ???
There is no third way (even if your name is Tony)...!

John Ling
Branch Manager
Lambeth Building Society