Managing Your Mortgage
Some simple steps to make sure that your mortgage is managed effectively.
For most people, taking on a mortgage is the single biggest financial commitment of their lives. Particularly during a time where there are ever increasing prices and stagnant wages, it is important to get the figures right when taking on your mortgage commitment. There are three basic steps in making sure your mortgage is managed effectively.
Step one: Analysis
Firstly, determine how much can you afford. It is essential to initially undertake a full income and expenditure analysis in order to determine how much disposable income can and should be used in repaying a mortgage. Only once this has been done can you see what can be afforded comfortably with your budget. Understanding this allows you to start considering the different options available to you in terms of loan amounts, terms and types of mortgages.
Step two: Go hunting
Secondly, seek out the best deal for you. It is often a good idea to speak to an Independent Mortgage Adviser at this stage to help determine your budget and loan requirements. They can then search the whole of the mortgage market to source the best deal to suit your circumstances. Many lenders offer headline grabbing interest rates to hook you in. These aren’t necessarily always the best solution as there may be booking fees, arrangement fees and other lender costs involved which all contribute to the final fee you will have to pay. It is sometimes the case that other less attractive rates but with no hidden charges may be the better option.
Step three: Forward planning
Finally, look to the future. Things can and do change, so it is essential that you are prepared for any future changes in regard to your mortgage such as an increase in interest rates or a drop in income. Your lender will still expect you to meet your monthly commitments regardless of events. Here at ESPC Mortgages, in addition to advising on your mortgage, we offer full advice in planning ahead for such circumstances. We offer practical advice on things like emergency funding, overpaying your mortgage whilst interest rates are low and protecting your income in the event of long term illness or the diagnosis of a critical illness.
As Independent Financial Advisers, ESPC Mortgages can help with all aspects of understanding your budget, applying for a mortgage and dealing with the relevant insurance requirements. Pop in for a no obligation chat with the team at our Edinburgh Showroom or give them a call on 0131 620 8680.
Peter McGregor is an Independent Mortgage and Protection Consultant who helps clients to find the mortgage that best suits their needs after analysing their personal financial circumstances. Call Peter on 07844 185 576.
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The initial consultation with an adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £350 (£295 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.