Friday 20 September 2019

Do you worry about your finances? Ultimate guide to mortgages for mums

I’m sure you will all agree with me that two of the biggest challenges for any family today are having enough living space and making ends meet financially.

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How is it that the smallest people in your home take up the most space with all their toys and belongings?! The balance between spending quality family time at home with our children versus returning to work to pay all the bills is a tricky one to strike.

But what if there was a way to carve out more time and space for you and your family without having to cripple yourselves financially?

To that end, we turn the spotlight on mortgages. Our homes are the largest purchase most of us will ever make which makes selecting the right mortgage product all the more important. Taking out a mortgage can be an extremelystressful experience. Fortunately, help is at end in the form of experts at Rivington Mortgages. They can help you find the right product for your needs even if you are self-employed or have struggled to find a mortgage elsewhere.

Whether you are a first-time buyer or a home mover wanting to move house this handy guide will help you find the best deal for you and your family’s finances.

1. Stick to your budget
Work out your house buying budget and stick to it. Once you’ve taken out a mortgage, you must keep up monthly payments to avoid repossession. Recognising your borrowing limits can save a lot of potential heartache. Here’s a handy calculator to help you do this.

2. Remortgage to get the best deal- If you are at the end of the initial mortgage period, switching to a new deal or provider can save considerable sums of money over the lifetime of your mortgage but you do have to watch out for early repayment charges.

3. Decide on an interest only or repayment mortgage
For interest only mortgages, you need to have money set aside to pay off the mortgage at the end of the term. This contrasts with repayment mortgages which cost more on a monthly basis as you are paying capital and interest but you own the property at the end of it.
4. Work out your attitude to risk
Do you like to know exactly how much your mortgage will cost each month or are you happy if it fluctuates?

With a fixed rate mortgages, you will always know what your payments are as these are set at the beginning of the mortgage term. Variable mortgages tend to be cheaper as the interest rate is lower than for fixed rates so you pay less but they follow the standard variable Rate (SVR) and the Bank of England base rate so they may go up or down. A third option is a tracker mortgage which fluctuates in line with the SVR but only up to a set.

In short, do seek expert advice and make sure you budget carefully to keep up with repayments.


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