Advice to stay away from mortgage misery in the New Year
If you happen to be one of those nearly 1.4m homeowners who have accepted the fact that they are nearing the end of a cheaply available fixed-rate deal, you should heed to the following advice: stay away from mortgage misery in the New Year.
The first important piece of advice is to make use of any spare cash pile for cutting down your existing mortgage balance to maximise the component of equity in your property holding.
The next thing to bear in mind is not to get tempted to utilise your home simply as a piggy bank for funding things like a brand new car.
If you’re going to release equity, ensure it is for things such as home improvements which will add value to your property.
Few other tips to avoid impending mortgage misery are:
• You should consider payment of a higher arrangement fee for obtaining the lowest discounted, variable & fixed rates, especially if you’re borrowing a significant amount of money.
• Fixed-rate mortgages are seldom cheapest at first but eliminate the risk that your costs may go up in future.
• Individuals with rather large mortgages and the need for a piece of mind may resort to fixing.