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5 Tips To Keep Your Mortgage Repayments Low

February 28th, 2022 Posted in Money Tips, Property Investment
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The average mortgage payment in the UK is £723 per month with an interest rate of 2.48%, according to property experts. However, repayments vary greatly depending on many factors. 

Whether you’ve got your eyes set on a property already or you are simply exploring the real estate market, one of the most important questions you need to ask yourself is: How can you make your mortgage payments more manageable? 

Some tips can help keep your mortgage costs as low as possible. 

5 Tips To Keep Your Mortgage Repayments Low - estate agent holding model house image
Photo by Towfiqu barbhuiya on Unsplash

#1. Avoid banks, go with a broker

Unlike a banker, a mortgage broker can help find the right mortgage deal for your situation. Brokers are more likely to get you a special rate from money lenders through their connections. As a unique client, you can’t negotiate a lower deal. Yet, a broker can rely on the volume of business they generate to obtain the best possible deal for you. 

Additionally, brokers are also more likely to manage your fees and application process, helping waive high costs in the process. 

#2. Consider your deposit

Typically, your down payment will range between 20% and 40% of the property value. While you can secure mortgage loans with as little as 5% deposit, you want to make sure you can save ahead for your down payment. Being able to pay upfront a high deposit has two important advantages:

Firstly, it can make your price offer more attractive to the property seller. 

Secondly, it also reduces the total mortgage amount, which means you can make monthly payments more affordable. 

#3. Improve your credit score

Your credit score affects your creditworthiness, aka the kind of loans you can apply to. You are more likely to find cheaper mortgages with a higher credit score. Boosting your credit score takes time. Check your annual credit report to review the data available about your finances. Errors can have serious consequences, so make sure credit report agencies have the right data. If you have a joint financial product with your partner, it’s worth checking that their financial history doesn’t affect your score. 

#4. Refinance your mortgage

In essence, refinancing your mortgage means you take out a new loan to replace the former mortgage. Refinancing can save you a lot of money if:

  • Your credit score has improved significantly
  • There are better mortgage deals available with lower market interest rates
  • Your home’s value has gone up, so you’re available for lower rates

You don’t have to wait for your current mortgage to come to an end, and you can search for a better deal up to 6 months before your current deal stops. Typically, mortgages provide a fixed rate deal for 2 to 5 years, after which your interest rate may increase. 

#5. Overpay your repayments

Not every lender is happy to let you pay more than agreed per month. However, if your lender is willing to let you increase your monthly payment amount, it can be worth considering repaying your mortgage sooner. It’s a great option for those who have made unexpected capital gains through inheritance or non-taxable wins. 

Keeping your mortgage fees as low as possible is no easy task. However, you have many options to ensure you get the best deal and manage your wealth in the most profitable way. 

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Everything You Need to Know About the Financial Aspects of Buying Property

February 28th, 2022 Posted in Property Investment
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There are many important financial considerations when buying a property. Therefore, it’s crucial to understand all the costs associated with the purchase to decide whether or not to buy. This blog post will discuss some of the critical financial aspects of property buying. 

Everything You Need to Know About the Financial Aspects of Buying Property - dream house at sunset image
Photo by Alex Staudinger from Pexels

1) The Down Payment

One of the most important financial aspects of buying a property is the down payment. This is the amount of money you pay upfront to secure the property. The down payment usually ranges from 20% to 40% of the total purchase price, although many exceptions exist. 

If you don’t have enough cash saved up for a down payment, you may be able to get a loan from a bank or other lending institution. However, be aware that taking out a loan will increase your monthly payments and could also add years to the time it takes to pay off your mortgage. 

2) The Mortgage

Once you’ve saved up enough for a down payment, the next step is to get a mortgage. A mortgage is a loan from a bank or other lending institution that enables you to purchase a property. The mortgage will have specific terms and conditions, including the amount of money you need to borrow, the interest rate, and the length of time it will take to pay back the loan. 

It’s essential to shop around for the best mortgage rates and different mortgage brokers, as they can vary significantly from lender to lender. Also, be sure to read all the fine print before signing any paperwork! 

3) The Closing Costs

In addition to the down payment and mortgage, there are also closing costs associated with buying property. These are fees charged by the lender, real estate agent, government, and others involved in the transaction. Closing costs can add up quickly, so it’s important to factor them into your budget when considering whether or not to purchase a property. 

4) The Maintenance Costs

Once you’ve purchased a property, there will also be ongoing maintenance costs. These can include things like painting, repairs, landscaping, and more. It’s important to factor these costs into your budget when deciding whether or not to buy a property. 

5) The Property Taxes

Another important financial consideration when buying a property is property taxes. These are levied by the government and can be a significant amount of money, depending on the property’s value. Therefore, it’s important to factor in property taxes when budgeting for your purchase. 

6) The Insurance

When you purchase a property, you will also need to get insurance. This protects you in case of damage to the property or if someone is injured while on the property. The cost of insurance will vary depending on the property’s value and the location. 

There are many important financial considerations to consider when buying property. By understanding all the associated costs, you can make an informed decision about whether or not purchasing a property is the right choice for you.

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The 7 Pillars of Financial Wellbeing – Awareness

February 22nd, 2022 Posted in learning about money, Wellbeing
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Awareness – Understanding where you are now, where you want to be and creating a plan to get there

If you were asked how much money is in your bank account right now, how accurate could you be? Within £100? Within £10?

If that was challenging, you are not alone. When I ask that question to a group, the majority has no idea.

Yet most of us know how much we earn and will soon notice if an expected sum on payday is different by even a small amount.

So what’s going on? It would follow that the gap in our understanding is in how much we spend.

if you would prefer to listen to this post it is available on The Fearless Finance podcast

The 7 Pillars of Financial Wellbeing - know your numbers. The importance of awareness - looking in a mirror image

I remember travelling one time and allocated myself a budget in the local currency in cash. Everything I spent, physically came from my wallet and I could easily see at a glance how much was left. Setting aside money for a coffee at the airport and a taxi to get there, I was pretty confident and certain how much I could spend throughout the week.

And it feels good to be certain.

Contrast that with how most people manage their money day to day. It arrives electronically and leaves electronically and if we only glance at a balance once or twice a month, we really have no idea how much is available.

Rather than certainty, we are in the realms of assumption and denial.

Know Your Numbers

A great starting point in financial planning and regaining control of your money is to know your numbers.

Make a list of your regular outgoings, housing costs, food, transport, subscriptions etc. Next add on other spending, which is less predictable such as nights out, or clothes maybe.

If you total the list, you now have a pretty good indication of how much you spend each month and where it goes.

If you enjoy being even more granular you can use tracking apps or a spreadsheet to dig deeper or automate the process.

To some this may seem like a bit of a pain, but the process can be liberating in several ways.

If you were thinking about changing jobs or starting a business, now you know how much you need to earn as a minimum.

By comparing with your current income, you can see how much of a surplus or deficit you have each month. If a deficit you can take action to reduce or re-evaluate your spending. A surplus can be directed towards saving, investment or paying off debt.

A good practice is to pay yourself first by taking some of your surplus at the start of every month, rather than waiting to see what’s left at the end.

A third benefit is becoming more conscious where you are spending your money. If petrol is costing you X hundred pounds a month, how much could you save by taking public transport? If home heating bills are spiralling, maybe it’s time to nudge down the thermostat? Small savings add up and its better for your wellbeing to be in control rather than in denial.

Setting Goals and Plans for The Future

One of the most popular categories for New Year’s resolutions is around money. Many people set well intentioned ones such as to get out of debt or increasing their income.

One of the keys to effective goal setting is to understand your why. Having a compelling reason for doing something will help you find the way to achieve it.

Some things are more under your control than others. For example, getting out of debt is achievable by identifying spare money and targeting debts in a systematic way. Stop spending money on credit cards and look to switch to lower rates of interest will also accelerate your success.

Doubling your income is more of a challenge especially if you earn a salary. Mostly because there are more factors beyond your control. However, if you ask powerful questions you can expect to receive powerful answers.

For instance, asking ‘why am I always broke’ is not a powerful question. But asking ‘what would need to happen for me to double my income’ could be.

That might lead to some ideas such as asking your boss what you would need to do to qualify for a promotion or raise. Taking additional training or qualifications. Working extra hours or starting a side project. Perhaps even switching careers all together.

A definition of financial wellbeing includes feeling comfortable and empowered around money both now and for the future. Therefore, a better understanding of where you are now and where you want to be is a great first step in improving yours.

If you would like my free guide – The 7 Secrets to Financial Wellbeing – please click here

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Save Time When Making Big Purchasing Decisions

February 21st, 2022 Posted in Money Tips
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Making decisions can take up a lot of your time. You often have multiple factors to think about, and you want time to think over your options before you make a final choice. When you need or want to buy something, especially if it’s going to be expensive, you can spend days, weeks, or even months mulling over your options. While it’s good to avoid rushing into big purchases, it can also mean that certain parts of your life are on hold until you’ve made a decision and bought what you need. If you can reduce your decision-making time, you can be more productive and move on to other things more quickly.

Save Time When Making Big Purchasing Decisions - female with shopping bags image
Image by gonghuimin468 from Pixabay

Define Your Needs/Wants

To help yourself make purchasing decisions more quickly, start by defining what exactly it is you’re looking for. What do you need from the purchase and what do you want? This will help to prevent you from aimlessly browsing different products or services with no real idea of what you’re looking for. You might need to do a bit of research first to determine what you should be looking for and what options are out there. Try finding some basic guides that give you the rundown on your choices.

Save Time When Making Big Purchasing Decisions - ecommerce image
Image by mohamed Hassan from Pixabay

Be Strict with Your Budget

Defining your budget should also help you to make a quicker and better decision. When you know how much you want to spend, you can immediately rule out anything that’s too expensive. You might also want to remove any options that you think might be too cheap. You might allow yourself to go slightly over budget if you find something that fits all of your criteria. However, it’s a good idea to define in advance just how much more you would spend and under what conditions you’d need to go over budget.

Use the Right Resources
Having some good resources for research can really help you to make a faster decision. When you have reliable resources that you know will give you good advice, you can use them whenever you need them instead of spending hours trying to find useful information. If you’re going to buy a car, Edmunds can help you out. If you’re looking for the best tech products, TechCrunch can give you the advice that you need. If you’re trying to buy a reliable appliance for your home, Good Housekeeping could help you find what you’re looking for.

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Image by Memed_Nurrohmad from Pixabay

Create a Checklist

A checklist of questions to ask yourself before a purchase will enable you to check that you’re making the right decision. It can also encourage you to think faster, rather than spending a long time mulling over whether you want to do something. You might ask yourself whether it’s something you need or just something you want. You can consider whether you have to buy it new or if buying used wouldn’t make much difference. You could also ask whether you’ve found the best deal or whether there are better prices available.

When you’re making big purchase decisions, don’t let the process drag out. You can be faster and more productive by improving your process.

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The Best Ways To See Success In My Business

February 11th, 2022 Posted in Entrepreneurship
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Success is something that everyone desires. From the moment we are born, our parents teach us about success. We are told to study hard, be polite, work hard and so on. We are also taught that there is no such thing as failure, only feedback and that failing isn’t the end of the world. We all want to succeed in life and in business but how do you know when you have succeeded? What does success look like for your business? Let’s take a look at some of the things you can do.

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The Key To Successful Entrepreneurship

Entrepreneurship is a risky business. However, if you are willing to take the risk, you can also reap the rewards. To give yourself the best chance of success, you need to have a clear plan. And your plan needs to really have broken down some of the key steps you’ll need to take to get to where you want to be. You need to be focusing on your audience, how you’re going to target them, how you’ll build your brand and stand. To help you, here are 3 things you might like to focus on if you are thinking about how to create success in my business.

1. Focus on Your Goals and Know Exactly What You Want

Setting goals is the first step to achieving success. It is important to know what your goal is and how you want to achieve it. There are many different types of goals that you can set for your business, but you should focus on one goal at a time. It’s important to focus on your objectives and key results too. In doing this, you need it to be something that will help your company grow and allow it to succeed in the future. You should also think about what will help you reach this goal, such as resources or money, and make sure that they are available before setting any goals.

2. Focus on Your Mindset and Consider Your Personality Type

Next, it’s important to recognize the both mindset and personality types. One of the most important things to keep in mind when it comes to success in my business is your mindset. You can have all the skills, intelligence, and knowledge in the world, but if you don’t have a strong positive mindset, you won’t be successful. But at the same time, getting to know your personality type can help you too. It can help you to set things up in way that works for you and your way of thinking, not against it.

3. Develop a Growth Strategy and Identify Your Weaknesses

A growth strategy is a plan for increasing the size of your business in terms of revenue, profits, and number of employees. It is an essential aspect of any successful business. In order to develop a growth strategy, you need to identify your weaknesses. This can be done by asking yourself what you are not good at doing or what you do not enjoy doing. You may want to outsource these tasks to people who can do it better or more efficiently than you can.

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