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Everything you need to know about Mortgages in 2019

Money is always a problem no matter what age we are. There are so many different things that we have to pay for on an almost daily basis; food to feed everyone, clothes to wear, insurance on whatever vehicle you drive and other small things. Even seemingly meaningless things like your daily cup of coffee ends up adding a lot to your bills.

All of these, however, pale in comparison to taking out a mortgage. If you’re looking to purchase your first home, or have done before, you’ll know all about the problems that arise when you’re taking out one of these. So many people have struggled to take out mortgages before and handle the following few years financially, so you need to be careful. Ensuring that you’re in a good place financially when you take these out is very important, and if you aren’t sure then you could end up in a pretty sticky situation. However, the fact that so many people have gone through this before should act as motivation for you; if they can do it, so can you! You just need to know what you’re doing, and that’s why I’m here today. Here’s everything you need to know about mortgages in 2019.

 

What is actually mortgage ?

So what actually is a mortgage? If you’re reading this I presume you already know, but there may be some people in the crowd who aren’t quite sure on all the technicalities. A mortgage is more or less the way that you go about paying for a property, whether it be your first house or a more expensive apartment. In the majority of cases, a bank will pay for your property outright and you then proceed to pay them back over an extended period of time. Properties cost an awful lot of money these days so it can take a while to do this. Your mortgage is sort of like a loan from the bank; they’ll pay for the property and you’ll pay them back. Mostly everyone who owns a property has to go through this and while it’s not a fun process, it’s a necessary one. If you don’t show consistent signs that you’re paying back the money, it’s possible for the bank or another agency to repossess your home- so making sure you pay it back is very important if you want to continue sleeping with a roof above your head.

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Who gets mortgages, then? Well, as I’ve already mentioned briefly, nearly everyone gets one at some point. However, the majority of people taking them out tend to be quite young and tend to be people who are looking to buy their first property. This is always a big step in someone’s life and it’s not an easy one, but if it’s handled correctly it can be a really important step in setting you up for life. If you make sure that your finances are in a good place from a young age and that you’re in the right frame of mind to begin paying back your mortgage, it’ll help you with a few things. Firstly, it’ll immediately show banks that you can be trusted with money and this may benefit you if you need some financial assistance at some point in the future. It’ll also set you up for later in life; the sooner you start paying back your mortgage, the sooner it can be forgotten about and the sooner you’ll own your property entirely.

 

How long does it take to pay back a mortgage, then? There’s no hiding the fact that they are an awful lot of money- some properties cost way into the hundreds of thousands of pounds range. You’d never be expected to pay massive chunks of this at once, however, and that’s why mortgages exist in the first place. The bank will sort out this big payment to start with and you’ll then proceed to pay them back in organised installments for a designated period of time. However, due to the huge amount of money properties cost, it can still take a very long time to fully pay off a mortgage. The average length of time to do this is usually about 25 years, although it can be more or less depending on the deal you have with the bank. If you take a bit longer than everyone else don’t worry- it’s not about how fast you pay them back, it’s just making sure you do pay them back.

 

You need to follow a good guide of tips to make sure that you’re paying back your mortgage at a good consistent rate. First of all, I’d recommend making sure that you always save your money well. You know that your mortgage payments will be pretty regular, so always make sure that you have money set aside for these direct debits. On most occasions money will be taken automatically from your account, so you always need to make sure you have enough in there for when that does happen. If you don’t, your account could go into the negative numbers- or the bank will be informed of this and you could risk losing your property (especially if this happens on a number of occasions). You should always have the required money set aside for when your mortgage payments are coming out and this will ensure you continue to pay back the bank in an effective way.

 

There are also a variety of different kinds of mortgages. These range from first time buyer mortgages, help to buy mortgages and guarantor mortgages (this is where a family member is willing to have their name put on your mortgage to help you out if you ever miss a payment). Each of these mortgages have their strengths and weaknesses and it’s up to you to decide which one will be the best for you. You have to evaluate your finances and the kind of property you’re hoping to purchase and then make this important decision for yourself.

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