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"The Easy Way to Get Your Best UK Mortgage" |
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It can be very tempting to borrow the maximum your mortgage lender will allow you. The monthly repayments won’t be cheap but, with interest rates at a historically modest level, they shouldn’t present too much of a burden.
Expect the unexpected
But interest rates can change and so can your circumstances,
turning a monthly payment that used to be perfectly affordable
into a problem that keeps you awake at night.
In may be 10 years since most people were paying double-digit
annual interest on their mortgage, and hopefully we won’t
see rates that high for a long time to come
But no-one knows for certain what direction the economy
will take in the future.
So it’s essential
to plan for the worst.
Taking a fixed-rate
mortgage may protect you for a few years, but when
your deal ends, you could face a very nasty shock.
Even if interest rates don’t rise significantly,
what if your own situation deteriorates?
Other debts or a relationship break up could have a serious
effect on your financial health.
And if you can’t keep up your mortgage repayments,
your mortgage lender is perfectly entitled to repossess
your home.
Don’t over-extend
yourself
That’s why it’s essential to leave a little
slack in your finances.
It’s also wise to have a savings cushion of at least
three months’ income to fall back on – and
to take out
insurance to cover your mortgage.
If you do get into financial difficulties, don’t
bury your head in the sand.
The sooner you let your lender know,
the higher the chance that it will be willing to negotiate.
For example, it might agree to a payment holiday, or to
switch you debt temporarily from a repayment
to an Interest-only
basis, giving you a much needed breathing space
To find out about state help, read What
if I lose my job or get sick? and Can
I get state help with my mortgage?
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Buyers?
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The Costs of a Mortgage in the UK
General costs of getting a mortgage
Hidden / True costs of home buying and mortgages
Charges at the start of a mortgage
Arrears Fees / Costs of falling behind payments
Fees for changing your mortgage
Final Payments / Mortgage Exit Fees
Why The Mortgage Lenders are So Greedy
How
to Choose your Mortgage
Types of Mortgage
Remortgages
Where to Find Your Mortgage
Getting a Mortgage in Principle
Guide to Buying a Home in the UK
Guide to UK Home and Mortgage Insurance