How important is shopping around for the cheapest deal?

It’s vital that you shop around for the cheapest deal because whatever mortgage you choose will make a major difference to the amount of money you have to repay. The most important factor to be considered is the interest rate that you will be subject to - this is called the ‘APR’ (annual percentage rate of interest). The APR encompasses a number of factors including the length of the mortgage term, the amount you are borrowing, and how much money you can leave as a deposit. To get the best deal possible you’ll need a good credit scoring and credit history - then you will be eligible for the lowest interest rates.

If you have had credit problems in the past you won't have access to the best interest rates. However, there are a number of lenders who specialise in providing mortgages and loans to customers with a bad credit history. The disadvantage is that you will have to pay a higher rate of interest to compensate for the extra risk associatd with lending to you.