How to reduce the pain of Home Ownership!
Top 5 mortgage tips.

Mortgages are great. They help you own your own home. You’re not wasting money on rent, your payments go towards your future. But mortgages can also give a great deal of pain. The pain comes from your mortgage payments taking up a lot of your monthly money, especially as interest rates are increasing.

Mortgages are the biggest debt anybody will take on. Therefore its extremely important to make sure you getting the right deal. Not just when you take out your mortgage but all the time you have your mortgage.

1. Save money - Look beyond the high street.

You are unlikely to get the best deal on the local high street. There are more than 8,000 mortgage products on the market, so you might be better off going to a mortgage broker.

2. Re-mortgaging is good for your Wealth.

If you have had a mortgage for a few years, the chances are that you are paying too much. By re-mortgaging to a better deal you could reduce monthly payments by more than £100 on a £100,000 mortgage.

That’s a saving of over £1,200 per year! Just think what you could do with that money!

It’s true re-mortgaging could involve paying additional costs, such as a new valuation and legal fees, but these maybe rebated by your new lender, and your broker will organise all these things for you.

In any case, the savings you make by changing mortgage provider will more than offset any costs.

Click here for a no obligation quote.

3. Tips if you face a mortgage shortfall.

If you have an endowment mortgage and face a shortfall, sorting out the mortgage is a priority. If you have savings available, the cheapest option is probably to reduce the outstanding loan immediately. If not the next best option is to convert part of the loan to a repayment mortgage.

The snag is that the monthly cost of the repayment loan will be higher than the interest only version of your endowment. But if you re-mortgage at the same time, you may be able to reduce your overall monthly repayments.

4. Additional borrowing on the Cheap.

Mortgages are the cheapest form of borrowing available, despite increased competition among personal loan providers.

If you need to borrow to finance a new car or home improvements or even consolidating all your existing debts, borrowing on your mortgage can make perfect sense.

Click here for advice on the best way to borrow.

5. Insurance is a MUST.

It is vital that a mortgage is covered. If you have a family life assurance is essential.

Even if you do not, it is still worth considering critical illness cover, which will pay a lump sum so the mortgage can be repaid if you suffer a serious illness.

In the last 3 years life insurance costs have fallen considerably. In the 1980’s and 1990’s, the cost of life cover was relatively high due to the fears about AIDS. Now those fears have decreased, the cost of insurance has also dropped.

So even if you shopped around for a good deal a few years ago, you may still be able to get a better one today.

Typically insurance rates are 30% lower. Don’t rely on your bank or building society, use a broker to help find the best policy for you. Click here to get a no obligation quote.