In todays financial climate if you have a good credit rating it can be easy to get finance or credit, perhaps a store card. The temptation can be there to apply and treat yourself to a new car, holiday or home goods like a TV or furniture. One of the largest purchase you can make is your house, a new mortgage can be the biggest single thing you pay for. Our mortgage broker advice in Wiltshire will always help you with any questions you may have on repayments.
We all love house hunting, many people even look at houses despite not selling their own or looking to move. Many people browse house sale sites just for fun knowing they can’t afford the houses they are looking at. If you are looking at a new home the temptation to stretch your finances can sometimes happen. If it is a joint application then the amount you can borrow could be more then you anticipated, meaning the temptation to borrow more to get a nicer home is there.
Low introductory interest rates also play a part too and makes the repayments seem affordable, however once you go onto the standard rate your monthly repayments can increase a lot stretching your finances. Never be swayed by low interest rates as this can lead to problems down the line and always remember your home can be repossessed if you fall behind on repayments.
Some people when applying for a mortgage tend to estimate outgoings on a lower level when it’s best to estimate at a higher level to be safe. You might think you will only spend £10 a week on petrol or food but that is likely to never happen. There is always the unexpected costs too like a car repair, gift or large bill. These are the things which can put a strain on your finances and if your mortgage repayment is hefty then you are setting yourself up for a lot of stress and hardship.
When looking to apply for a mortgage offer always borrow only what you can afford and comfortably pay back. Never stretch yourself meaning you have no rainy day income which you will always need at some point. You will soon resent your home if you can’t afford to do anything else due to your mortgage repayments. Our friendly mortgage broker advice can make sure you only borrow what is suitable for you.
Always consider hidden costs in life you have not accounted for. Birthdays, holidays, repair bills, medical bills, trips away and meals out all add up. That nice new home might not be as appealing if it takes up all your finances leaving you unable to do anything else. The difference in repayment figures once the introductory interest rate ends can be a lot so always take this into consideration when considering the size of your lending and mortgage.
The actual monthly repayment might seem affordable on it’s own but never forget the other outgoings you have. You should always sit down and go through your own finances fully, making sure you have a list of all outgoings, those on a regular basis and then look back a year and think of those expenses you had not planned for, then simply add them again as if they would happen next year. This way you include all possible outgoings.
Stretching your finances only increases the risk of your home being repossessed. Obviously peoples finances change and there is also insurance you can take out to help when certain things happen. These options can be discussed by your mortgage advice broker during your application. To help you with finance planning always include the following:
- Mortgage repayment
- Household bills
- Food bills
- Petrol, parking
- Council tax
- Holidays and trips
- School costs
- Entertainment, Sky etc
- Unexpected outgoings
- Hair and make-up
This should help you create a complete list of all your outgoings so you know what you can afford. Our mortgage broker advice is free and with no obligation at any time you can get professional and qualified advice in Wiltshire. We can provide you the same service also no matter where you are nationwide. We offer a free initial telephone consultation where we can discuss your situation. We work with lenders for all scenarios and financial situation so we can help you no matter what.