Buying a home is probably the largest investment you will make during your lifetime. Although it is an exciting time, there are ways to make sure that refinancing a current mortgage or buying your first home offers the best value.
Rather than invest all your spare cash in a new home, it is wise to retain a cash cushion so that you have some savings in addition to an emergency fund. As well as a mortgage to pay, there will also be other costs, like utility bills, insurance, home maintenance and other expenses. Although property generally appreciates in value over the years, the value can’t be easily transferred into cash, so you can’t benefit from the cash tied up in it.
Select your mortgage type carefully, with a CeMAP qualified mortgage advisor if possible, so that you gain the best value deal for your circumstances. Every individual has different circumstances, which means that one deal will not suit all. While a long term mortgage may be ideal for one buyer, a short term fixed rate deal may be better for another.
Although it is generally a good idea to overpay on your mortgage, make sure you pay off more expensive debt first, like credit cards and loans. If you have secured a low rate deal for your mortgage, you may benefit by paying extra into a pension fund before paying off your mortgage. Advice from a qualified professional can help to ensure that you make the best decision for your situation.
