Mortgages Some Important Points You Need To Consider

Mortgages Some Important Points You Need To Consider



Mortgages - Some Important Points you​ Need to​ Consider
There are many potential perils and pitfalls that a​ borrower can face when buying a​ home and taking out a​ mortgage .​
Many borrowers can fall foul of​ these perils due to​ misinformation or​ a​ misunderstanding.
Read on​ as​ we try to​ discover some common pitfalls facing the​ potential mortgage borrower.
Interest Only Mortgages
Interest only mortgages are becoming increasingly popular,​ especially with first time buyers looking to​ take that first step onto the​ property ladder .​
Although having an​ interest only mortgage will result in​ lower monthly repayments,​ it​ will not however pay off any capital owed on​ the​ mortgage.
Interest only mortgages do have there place in​ the​ market and can be extremely useful in​ times where money is​ very tight or​ when there is​ an​ investment vehicle in​ place to​ repay the​ outstanding mortgage balance at​ the​ end of​ the​ term .​
For most borrowers however,​ interest only mortgages do seem to​ be a​ false economy - no headway will ever be made into reducing the​ balance owed .​
On the​ whole,​ an​ interest only mortgage should only usually be adopted on​ a​ short term basis before reverting to​ a​ Capital repayment type mortgage .​
New Build Enticements
Land is​ a​ precious commodity in​ the​ UK,​ especially in​ our densely populated towns and cities .​
In recent times,​ property developers have looked to​ seize upon every available scrap of​ land in​ order to​ service the​ need for new homes - and of​ course,​ to​ make a​ quick buck.
The need to​ fill these new developments as​ soon as​ they are constructed is​ big one - building contractors will commonly offer special deals in​ order to​ entice prospective buyers .​
Such methods to​ entice customers will include paid up stamp duty and full or​ partial deposit payment.
It is​ important to​ remember in​ many walks of​ life that if​ a​ deal looks too good to​ be true,​ then it​ usually is​ - builders and developers will often factor these costs into the​ actual price of​ the​ house or​ flat.
Dont Move Home on​ the​ Weekend
This is​ one tip that you​ may have heard before however it​ is​ one that is​ often overlooked - Dont move home on​ the​ weekend! Moving home on​ a​ Saturday remains the​ most popular time with people generally reluctant to​ take time off work .​
It is​ the​ busiest time to​ move and also the​ most expensive with many removal firms and van hire companies increasing their prices accordingly.
Attempting to​ move house on​ your own can mean the​ stress and hassle increases ten fold - although removal firms may seem to​ charge very high fees,​ moving without their help can often mean repeated trips and lots of​ strained muscles .​

Trust Your Own Judgement
The house buying process and securing a​ mortgage,​ to​ many is​ a​ very daunting prospect .​
It is​ very important to​ stand your ground when it​ comes to​ sticking to​ budget - it​ is​ typical to​ put in​ an​ offer below the​ asking price to​ negotiate the​ best price,​ with most sellers expecting you​ to​ do so.
By the​ same token,​ if​ you​ are selling a​ property,​ it​ is​ not common for the​ seller to​ accept the​ first offer they receive in​ pursuit of​ the​ best price .​
Holding out for your favoured price can often pay dividends - it​ is​ often worth trusting your own judgements .​
Shop Around For Insurance
More often than not is​ pays to​ shop around for insurance policies .​
When taking out a​ mortgage,​ it​ is​ common for the​ lender or​ mortgage broker to​ peddle insurance policies that they will arrange on​ your behalf.
For them this means extra commission! Insurance policies such as​ buildings and contents insurance,​ life assurance and mortgage payment protection insurance to​ name just a​ few .​
These policies can often be arranged at​ a​ cheaper premium if​ you​ are prepared to​ shop around for yourself!
Look Before you​ Leap
Taking out a​ mortgage with friends or​ a​ partner is​ becoming an​ increasingly popular way of​ buying a​ home .​
It becomes important therefore that if​ you​ do decide to​ take this big step,​ you​ must be confident that you​ are going into it​ with someone you​ know and trust.
Relationships do however turn sour at​ times and if​ this becomes the​ case,​ then sorting out your financial predicament will be an​ unwanted hassle - It is​ important to​ establish at​ the​ very start exactly what should happen if​ things go wrong and keep a​ record of​ who has contributed what .​
a​ consultation with a​ solicitor could prove to​ be worthwhile also .​
Honesty is​ the​ Best Policy
It always pays to​ be honest - this becomes particularly relevant in​ the​ case of​ arranging a​ mortgage or​ insurance policy .​
Dishonest or​ inaccurate information could leave an​ insurance policy worthless and dishonestly could be seen as​ a​ fraudulent offence on​ a​ mortgage application form.




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