29 min
#20 - Mortgages can be more FLEXIBLE than you think ReadytoBuyPodcast
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- Home & Garden
So many of us have a mortgage and see it as a millstone around our neck, something that holds us back and can impact our lifestyle.
I say the opposite, that our mortgage can flex around our lifestyle
Your lifestyle and priorities will change as you go through different stages of life, whether you’re young and single, right through to having a relationship(s), possibly children, career aspirations, retirement planning etc
Think of an imaginary set of scales with the following on either side:
income – which ultimately helps to fund your lifestyleLifestyle – hobbies, leisure, family, career
Naturally, the balance changes as you go through life as your career and income change, alongside your lifestyle.
When it comes to owning your home, your needs will change along with your life-stage and lifestyle and having some flexibility will really help you to maintain this balance.
A Mortgage – is a necessary vehicle to help us own our own home - None of us dream about getting a mortgage, it’s the dream house and the lifestyle that we strive towards!06:27-07:27
What factors determine our monthly mortgage payments?
1. How much you borrow – Loan Amount
2. How long you repay the mortgage (term)
3. Interest rate
07:29-11:27
1. Loan Amount
When we think about the loan amount, you may think it’s set in stone – but you do have options that can help your lifestyle
• I can’t stress how important regular reviews are. All of our situations change over time, so speaking with a whole of market mortgage broker can help you understand your options.
• You might decide that you need a bigger house (maybe your family has grown!). Moving may not always be the cheaper option – there are a number of costs you’ll incur when moving such as stamp duty – so why not explore the cost of both extending and moving to help you make an informed decision.
• If you’ve got unsecured debts that are impacting your lifestyle due to their monthly costs, there may be an option to consolidate them into the mortgage for one monthly payment. You may end up paying more interest and securing a debt that was previously unsecured, but your advisor can talk you through your options to find the most suitable option for you.
Think carefully before securing your debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
• If you’ve got a significant amount in savings (earning very little interest) there are mortgages that allow you to offset interest on your mortgage by using these savings, which could save you money. Again your advisor could talk you through these options to ascertain whether they’re suitable for your situation
• If you have equity in your property and have been thinking of buying a holiday home – there might be the opportunity to increase your mortgage to help fund this. Again your advisor would be able to discuss your personal circumstances with you
11:28-15:38
2. Interest Rate
Getting the right deal for your circumstances is so important to ensure you’re not paying more than you need too.
Use a whole of market mortgage broker, who can look at the whole market to find you the most appropriate and competitively priced deal available to you, rather than just one or two – or even “your bank”
Review regularly, rates change as we’ve seen over the past few
So many of us have a mortgage and see it as a millstone around our neck, something that holds us back and can impact our lifestyle.
I say the opposite, that our mortgage can flex around our lifestyle
Your lifestyle and priorities will change as you go through different stages of life, whether you’re young and single, right through to having a relationship(s), possibly children, career aspirations, retirement planning etc
Think of an imaginary set of scales with the following on either side:
income – which ultimately helps to fund your lifestyleLifestyle – hobbies, leisure, family, career
Naturally, the balance changes as you go through life as your career and income change, alongside your lifestyle.
When it comes to owning your home, your needs will change along with your life-stage and lifestyle and having some flexibility will really help you to maintain this balance.
A Mortgage – is a necessary vehicle to help us own our own home - None of us dream about getting a mortgage, it’s the dream house and the lifestyle that we strive towards!06:27-07:27
What factors determine our monthly mortgage payments?
1. How much you borrow – Loan Amount
2. How long you repay the mortgage (term)
3. Interest rate
07:29-11:27
1. Loan Amount
When we think about the loan amount, you may think it’s set in stone – but you do have options that can help your lifestyle
• I can’t stress how important regular reviews are. All of our situations change over time, so speaking with a whole of market mortgage broker can help you understand your options.
• You might decide that you need a bigger house (maybe your family has grown!). Moving may not always be the cheaper option – there are a number of costs you’ll incur when moving such as stamp duty – so why not explore the cost of both extending and moving to help you make an informed decision.
• If you’ve got unsecured debts that are impacting your lifestyle due to their monthly costs, there may be an option to consolidate them into the mortgage for one monthly payment. You may end up paying more interest and securing a debt that was previously unsecured, but your advisor can talk you through your options to find the most suitable option for you.
Think carefully before securing your debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
• If you’ve got a significant amount in savings (earning very little interest) there are mortgages that allow you to offset interest on your mortgage by using these savings, which could save you money. Again your advisor could talk you through these options to ascertain whether they’re suitable for your situation
• If you have equity in your property and have been thinking of buying a holiday home – there might be the opportunity to increase your mortgage to help fund this. Again your advisor would be able to discuss your personal circumstances with you
11:28-15:38
2. Interest Rate
Getting the right deal for your circumstances is so important to ensure you’re not paying more than you need too.
Use a whole of market mortgage broker, who can look at the whole market to find you the most appropriate and competitively priced deal available to you, rather than just one or two – or even “your bank”
Review regularly, rates change as we’ve seen over the past few
29 min