Taking a mortgage is an most important financial decisions you’ll ever make. Making a wrong mortgage decision will potentially cost you thousands of pounds.
5 Steps on how to save money on mortgages
1.Do your Budgeting
Work out your monthly budget. You can do this using our freeMonthly Budget TemplateBy doing this you can working out how much you can afford to spend on a mortgage. You can also check out the deals that are available yourself before going to see an adviser.
2. Make sure you understand what mortgage advisers say
Advisers should be able to give you good, clear reasons why they’re recommending certain mortgage deal and not other. If your adviser does not do this, ask them and get them to explain it again in further detail.
3. Look for good interest rates on the mortgage
Finding a mortgage with a lower interest rate is a good idea as you do not have to loose out too much money
4.Fixed rate mortgage/Variable rate mortgage
Choosing a fixed rate mortgages can be good for buyers who needs the stability of setting a defined monthly repayment. With variable rate mortgage your payments may go up and down according to the Bank of England Base Rate. This might have an impact on your monthly budget plan, however with a fixed rate mortgage you have the security of knowing the exact amount you will repay each month, despite any changes in interest rates.
5.Make additional or extra payments on your mortgage save loads £££s
Making a commitment to at least pay any extra money on you mortgage will go a long way on reducing your interest you pay. It does not have to be a big additional payment even £50 every month will do. This will not only reduce your interest but you will also knock out same of your mortgage payment years and finish paying earlier.