Many people like the idea of creating a property portfolio to fund their retirement.
Not everybody is a fan of pension plans, but they do understand the property. I know that over the past 20 or 30 years it has been a sound long-term investment. Despite the peaks and troughs.
In this case study. We look at one way we helped a client take her first step on the road to being a Landlord.
Robin is a self-employed mum of two, who is a Director of two small businesses in Sunderland. She and her partner had a substantial amount of equity in their home and were interested in raising some capital to buy a low-value buy to let property, possibly at auction.
Robin felt she could get some bargains at auctions, but she never had enough money to attend and be a cash buyer.
She had looked into Remortgage advice in Sunderland to remortgage her house for this purpose before but had been told it wasn’t possible unless they could provide an address for the onward property they wanted to purchase – the proverbial “chicken and egg” scenario.
Robin also mentioned that once or twice a year, she received a dividend in the region of £3000 from one of the companies she was a sleeping partner in, and she has been prone to wasting some of that cash when it arrived, perhaps unexpectedly.
I could tell that Robin was a very busy person but also an astute businesswoman. The dividends she received could be put to better use as she never had it earmarked for anything specific.
I recommended an offset Remortgage in Sunderland for Robin and her partner for their home.
I found a Lender who was happy to release funds on completion to be assigned to a future buy to let purchase without insisting on a specific property.
Robin simply deposited the additional funds into the offset savings account that comes as part of the mortgage, and these monies simply sit there until she needs them.
The offset savings accounts do not attract interest but instead is offset against the mortgage balance.
To clarify, Robin had £85,000 surplus funds from a total remortgage of £215,000. While the money is in the savings account, Robin only pays mortgage interest on the £130,000 difference between the two figures.
The £85,000 is on instant access and was available whenever she needed it
Three months after completion, Robin identified a suitable property that was in a state of disrepair. It was probably not mortgageable itself, but of course, Robin had access to liquid funds to buy the house outright.
Robin secured the property at a knock-down price of £55,000, but this amount needed to rise to a total of £70,000 to fund legal costs and a refurbishment program of works.
A further nine months went by, and with the works all done, Robin had no trouble finding a tenant. The house was now worth £90,000, and we raised a remortgage of £67,500 against it to fund the purchase of property number two.
Robin has no intention of becoming a full-time Landlord, but she can now see a way forward to owning three or maybe even four properties in the future to fund her planned retirement lifestyle.
She loves the flexibility that her offset mortgage brings, and while she still ‘squander’ some of her dividend, which is her right to do. Without fail, half of it at least is deposited back into her offset savings account, her money working “for her” to reduce the total amount of interest repayable.
If you are interested in offset mortgages or building your investment property portfolio, please get in touch, and our Mortgage Advisors in Sunderland will be happy to assist you.
Many people are, to a greater or lesser extent in debt at some point in their lives. Sometimes due to personal circumstances, this can spiral out of control. When this happens, it can feel that once you have paid all your bills at the start of the month. It is little or no disposable income left.
One route out of this for some applicants is to consider a debt consolidation remortgage in Sunderland . As we explore here in this case study.
Deborah was a divorcee living on her own; her children have flown the nest. Her debt had started to accumulate with legal bills after her divorce and increased gradually over the years. Having to live on one income with unreliable maintenance from her ex. Finally, her daughter became pregnant quite young, and as any mum would. She tried to help her out financially, although arguably, she couldn’t afford to do so.
Luckily Deborah had paid her mortgage off some years ago so that asset was there to potentially borrow against. Her take-home pay was £1100 per month, and her credit commitments were taking up more than half of this.
She had not missed any payments on credit commitments, but she had no emergency fund, and while Deborah’s credit score wasn’t too bad, she was no longer able to obtain new zero% credit cards to transfer her balances.
She was recommended to me to see if there were any options available to improve the quality of her financial life.
When I met Deborah was feeling quite low. She had cut back on all luxury spending, and it was evident that she was desperate to take ownership of her financial situation before it got any worse.
We explored the possibility of a personal loan, but the debts had mounted too high for that. Deborah had no family members who were able to help; downsizing was not an option, and we agreed the right way forward would be to remortgage the house to pay off the debts and reduce her outgoings.
We managed to find a Lender to meet Deborah’s requirements. Although it has to be said given her low income, it was hard to find a lender who would lend her enough. We managed to get her an Agreement in Principle, but regrettably, when we submitted the formal mortgage application, it was declined.
The reason the case was declined was that the Underwriter who assessed the situation felt that because Deborah had been using cards to pay off other cards and not then closing down the cards.
When she had transferred balances, there was a high risk that she should re-offend and rack up debts again.
Deborah was devastated. She understood the concerns, but in her eyes, she had accepted she had a problem, and by engaging us had taken a positive step to remedy her position. To her, their risk was minimal – the loan to value was under 40%, she had never missed any payments, and if the remortgage was successful, she could be a whopping £500pm better off.
All the above was indeed correct, but clients don’t always appreciate that taking a property into possession is the last thing a Lender wants or needs. It reflects poorly on the numbers they are required to report each year. In the event of repossession, they have the considerable hassle of securing the property, ensuring it, marketing it, selling it, and paying the surplus of equity (if any) back to the previous owner.
As such, if there is reasonable doubt, then an Underwriter has the discretion to decline an application, even if it is within their published lending criteria.
We pride ourselves on getting our recommendation right the first time. However, this one didn’t work out that way due to the Underwriter’s adverse comments at the full application stage. We knew this remortgage wasn’t as risky as the Lender had made out. It ought to be the right outcome for her.
Deborah perhaps felt like she wanted to give up, but we went back to the drawing board to find a different Lender. Sure enough, we found one and armed with the information we had from the previous Lender. We were able to provide better supporting comments for the second roll of the dice, and luckily this time, it was successful.
Deborah didn’t take this step lightly. She has now secured debt that was previously unsecured. It may end up paying back more interest overall, depending on how quickly she can get the mortgage paid off.
However, in the short term, this has worked well for her. She now has had the burden of debt relieved from her shoulders, her credit score has improved, and she can save a little each month.
The savings we were able to help her make amounted to over 50% of her net take-home pay monthly and it has changed her life. Upon completion of the remortgage. Deborah cut up all her credit cards except one to use in emergencies only. Now she has now got her financial life back on track.
If you are like Deborah struggling with debt but are a Homeowner with equity. Please call us to discuss your options, ideally before the situation gets out of hand. The earlier you take back control of your finances the better you will feel about things. We offer debt consolidation Remortgage Advice in Sunderland & surrounding areas.
Critical Illness Insurance pays out a lump sum if you are diagnosed with one of the conditions on the policy such as Cancer, Heart Attack or Stroke. Sometimes Insurers receive criticism for declining claims when someone is very ill but with an illness not covered on their policy but most major providers actually pay out over 90% of claims.
If claims are denied it can also be because the claimant did not disclose an underlying medical condition they have when they took the policy out.
In the event of a claim the lump sum is paid out irrespective of whether the claimant returns to work or not, the key thing is whether the illness they had matched the definition on their policy.
The claimant can use the lump sum they receive for any purpose they wish. Be this to repay their mortgage, pay for medical care or make modifications to their home.
Different insurers cover different illnesses on their policies and it’s wise to take advice prior to selecting a policy. This will ensure that you end up with one that is suitable for your needs. Critical Illness Insurance in Sunderland is much more expensive than life cover because the chances of you making a claim are far higher.
Different insurers cover different illnesses on their policies and it’s wise to take advice prior to selecting a policy. This will ensure that you end up with one that is suitable for your needs. Critical Illness Insurance is much more expensive than life cover because the chances of you making a claim are far higher.
Your chances of surviving the types of conditions covered are far higher than they were 30 years ago. However, if you are unfortunate enough to contract one of them then there are often financial consequences. Hence the popularity of the cover, especially for applicants who have mortgages or children to think about
It’s very important to us that all of our customers are given an equal opportunity to take insurance. If you are looking to take out this type of Life Insurance in Sunderland, you should take up our free protection review.
We offer all of our customers a free, no-obligation protection review where we’ll have a look at any existing policies you have in place and assess their suitability.
Income Protection Insurance is designed to pay out a monthly benefit if you are unable to work due to illness or accident. The applicant can decide along with the help of their Advisor how much cover to take out. Also how long they are prepared to wait before they are entitled to put a claim in.
Income Protection insurance can be expensive compared to life cover. As you are far more likely to be unable to work due to illness than die. The monthly benefit continues to be paid out until you return to work unless you have selected the “Budget” version of the policy. This typically only pays out for 24 months but is much cheaper.
The big advantage of Income Protection Insurance is that unlike Critical Illness Cover it pays out for whatever is preventing you from working. Unlike Critical Illness which is just a list of specified illnesses.
This type of policy is very popular amongst self employed and employed applicants who do not benefit from generous Employer sick pay schemes.
It’s very important to us that all of our customers are given an equal opportunity to take insurance out with us.
We offer all of our customers a free, no-obligation protection review where we’ll have a look at any existing policies you have in place and assess their suitability. Then, if you want to take out Life Insurance in Sunderland, we will recommend which products, including critical illness and income protection that meet your needs. If required, we’ll then tailor the plan to match your available monthly budget.
Providing Income Protection Insurance Advice in Sunderland & Surrounding Areas
There are a wide variety of reasons why a homeowner may instead look at moving home in Sunderland. Here we will take a look at the most frequently found reasons that have been seen during our time as an expert mortgage broker in Sunderland.
One of the much bigger reasons that we see people looking to move home, is because they are now in need of more living space. This is a step that makes a lot of sense, as first time buyers in Sunderland will most likely have gone for a smaller house at first.
In the future, when circumstances are likely to change, it could be because they want a bigger place to live in. There are many reasons for this thinking, from wanting to start a family, to generally needing some more room in their home.
Rather than moving home in Sunderland, if you want to create more space, you could instead remortgage for home improvements. In doing so, you raise capital (money) to put towards the changes you would like to make, such as extensions on your property.
We tend to find that this is most popular with young and growing families, giving them the freedom to continue living within a home they have grown to love and appreciate over time. Common choices include loft conversions, extra bedrooms, home offices and home gyms, to name a few.
Remortgaging for home improvements is also a great way to potentially increase the value, handy for if you ever decide you want to sell your home. Get in touch for remortgage advice in Sunderland if this is something that you would like to achieve.
Another popular reason we hear of is customers perhaps looking to have a change of scenery, growing weary of what they have gotten used to. Once again, this is fairly common in homeowners who have previously had first time buyer mortgages in Sunderland.
The reason that this may be the case, is that they could have previously had a limited budget, settling for a property that was affordable at the time. Once they have come into more money in the future, it may be plausible that they could purchase the house they truly desire.
It’s more than just this, however, as family can become a reason for needing a change of location. Not everyone thinks of schools when they buy a house, though if you decide to have children, you may find yourself thinking about which schools are best and looking at catchment areas.
Speaking of family, we also hear every now and again from home movers, who give their main reason for moving as wanting to be closer to family and friends. These types of scenarios become more frequent when a couple has started a family or has suffered a significant loss.
In regard to starting a family, if both parents are working full time, we find it likely that they will move closer to family for help with childcare. This usually is a much more preferred choice, as planning childcare around your life and finances can be time-consuming and costly.
If you are looking at moving home in Sunderland, we would recommend speaking to an expert mortgage broker in Sunderland today. Our team of mortgage advisors here at Sunderlandmoneyman will be able to run through the entire home-moving process with you, including any costs you’ll have.
We have the ability to search through 1000s of mortgage deals, finding you the most appropriate one for your financial and personal situation. Book your free mortgage appointment today and we will get started on all the ways we can possibly help you.
If instead of moving home in Sunderland you feel more inclined to remortgage for home improvements, this is something we often help customers with. Book your free remortgage review today and we’ll help you take the next step in your chapter as a homeowner.
Whether you are a first time buyer in Sunderland actively viewing properties or a home mover in Sunderland with your house on the market, you may have noticed that some of the larger estate agents and builders are very keen for you to use their in-house mortgage advisor and conveyancing services.
Being part of a stand-alone Mortgage Broker in Sunderland, we receive lots of feedback as to what sales tactics can be used, examples of this are;
Remember, when negotiating a purchase price, do you really want the seller of your property to have access to your personal financial situation and potentially knowing your maximum borrowing?
When you are reaching the end point of your initial fixed period of your mortgage term, generally homeowners start to look for their options on what to do next, with a remortgage in Sunderland being one of the most popular choices. Another choice is a product transfer in Sunderland.
This may not be something that many homeowners are familiar with, especially if you have been doing your own research ahead of the end of your fixed period. You could say, however, that product transfers are just as popular, if not more popular than an actual remortgage in Sunderland itself.
To explain the difference here, a remortgage in Sunderland is a new mortgage that replaces your old mortgage, with a different mortgage lender. They usually have better rates of interest and lower payments. They typically require documentation to be submitted, before you can get those deals.
A product transfer in Sunderland on the other hand, is the same concept but with the same mortgage lender. What this means, is that so long as your circumstances aren’t different, additional documentation isn’t usually required; You have already been accepted by that mortgage lender once before!
One of the main reasons why a customer might look to take out a product transfer in Sunderland instead, is that you could be able to save yourself a good amount of money. This in itself can be quite appealing to homeowners.
This is because when you product transfer in Sunderland, you don’t need to pay solicitors fees, may be able to avoid early repayment charges and also may not have any redemption fees. There may still be some arrangement fees for you to pay, however.
A product transfer in Sunderland may also serve to save you a great deal of time and make your process a lot easier. Remortgages in Sunderland may take a while to complete, whilst with a product transfer in Sunderland, because the mortgage lender already knows you and your habits, it can be much quicker.
Whilst product transfers in Sunderland may seem appealing, some may still instead look to remortgage in Sunderland. These are also incredibly popular, due to the flexibility involved with those types of mortgages.
Think about it; You have access to multiple mortgage lenders, with a variety of deals that could be better. Finding one of these otherwise inaccessible mortgage deals could save you a lot of money in the long run.
Additionally to this, a product transfer in Sunderland only means you can take out a new mortgage on the same term you have already agreed to. A remortgage in Sunderland possibly gives you the ability to change your term and allow for the next remortgage in Sunderland to go much easier.
Another choice that is popular, is taking out a remortgage in Sunderland to release equity. Equity is the difference between what you owe on the property and the value of it. This is usually done for all kinds of reasons, such as to fund home improvements, place a deposit on another property and more.
Releasing equity will not work exactly the same with product transfers in Sunderland, though you could possibly find yourself making use of something called a further advance. You should get in touch with a mortgage specialist to learn more about product transfers and further advances in Sunderland.
As a general rule, because you are not moving out of the property, there will be no need for a solicitor to be involved when you take out a product transfer in Sunderland.
Where this will become necessary, is if you are going to be making any changes to your mortgage terms, such as removing or adding a name from your mortgage contract. Once this is set to happen, you will most likely need a conveyancer or solicitor.
Generally speaking, you will not need to have a credit check taken out on you for a product transfer in Sunderland. This can differ between mortgage lenders. The reason this typically occurs, is because the mortgage lender already has a record of you being able to keep up mortgage repayments.
Alternatively to this, if you have, if you have had credit problems during your current mortgage or are remortgaging with another lender to perhaps release some equity, you may find yourself with another credit check taken out on you.
When you take out a product transfer in Sunderland, you may need to plan ahead and think about whether you can foresee yourself moving home at any point in the future. Your current mortgage deal may or may not allow porting a mortgage to a new property.
Instead, a remortgage in Sunderland may allow you to achieve this type of flexibility, by selecting a mortgage deal that may give you the choice to take your mortgage with you if you ever decide to move home.
Our team offer expert remortgage advice in Sunderland and will be able to take a look through your case and figure out what it is you are looking to achieve. Not only can we get through your process efficiently, you’ll also benefit from the variety of deals we have with our large panel of mortgage lenders.
We genuinely care about our customers and our service goes beyond just typical remortgage advice in Sunderland. If you are looking to product transfer in Sunderland, we can help with this. If your mortgage advisor in Sunderland feels like a remortgage is better for you, however, they will advise as such.
We believe in being completely transparent with all of our customers, your best interest should always be a priority. To discuss your options for either a product transfer in Sunderland or a remortgage in Sunderland, book a free remortgage review and speak to one of our mortgage experts.
Most homeowners who are looking at moving home in Sunderland will need to sell their current property to proceed The equity (the amount at which you sell for without your current mortgage balance added on) will contribute towards a security deposit for the next purchase. You can top this up from savings or a family gift if you wish.
There is always a “magic number”, the minimum that a seller (vendor) is willing to accept to agree on a sale. However, when a home is listed for sale, it is essential to market and presents it in the right way. It can make a big difference in terms of how quickly it sells.
The asking price should portray that of its surrounding properties. Be reasonable, and some estate agents may suggest the highest possible price for the sake of it. With everyone now able to advertise on Zoopla and Rightmove, it’s a good idea to make the dive into the market and get as many viewings as possible, within the first two weeks.
If interest in your property seems to below, there’s a chance it was overvalued.
Before putting their current property on the market, people often like to research and visit other properties to identify which one might become their new home. If this is you and you need a quick sale, here are some tips to give yourself the best possible chance of selling it.
The first tip can be challenging to imagine, but the first thing you need to do is inspect your own house as if you were viewing it for the first time yourself. If it has excellent “kerbside appeal”, (i.e. it looks beautiful as you drive up to it) that will be a great first impression.
Something simple like a freshly jet-washed drive and neatly cut front lawn indicates that you are the kind of person that looks after their home. It would help if you aimed for that feel-good factor, it’s more than likely that the potential buyer will think the inside is expected to be as nice as the outside.
If you have any kids, it’s best to put away any bikes or loose toys in the front garden. Make sure your front door looks appealing (clean), and the doorbell works. Spend a little bit of cash getting a nice new doormat or welcome sign.
Go around each room and caution around rooms like kitchen or bathrooms, pay much attention, ensuring that they are spotless, and have a high hygiene level. Cupboards and wardrobes should be neatly stacked and free of clutter.
One of the critical things is to ensure your home is immaculately clean. Wash your curtains, blinds, wipe down your walls, and clean all your floors and windows. All repairs should be up to date too and clean bedding on the beds. Windows should be sparkling clean inside and out. New carpets in smaller rooms can be an inexpensive way of creating the impression that your house is welcoming and has been well cared for.
If you are a smoker, it’s an excellent tip to air the rooms out before the potential buyer arrives. Ensure there are no bad smells lingering, buyers can be put off bad odours from pets or cigarettes.
You will want your buyer to feel at home and relaxed as they view your property so try and avoid having pets or young children getting in their way as they move around. That said, if it’s a family home you are selling, then just a couple of family pictures and paintings can help as it will them envisage bringing up their family there too.
A buyer likes to walk on their own, if there are two of them allow them some breathing space to talk amongst themselves but be ready to answer their questions honestly.
Your bathroom should be presented spotless declutter any items like cosmetics and co-ordinate your towels and flannels, maybe consider doing a small investment look at ways you could create a fresh feel with some minor renovations. Make the floor space spotless.
A well-lit house is more appealing to potential buyers, this is achieved through making sure lights brighten up rooms, and all curtains and blinds are open. Plants often block out light so place these strategically throughout the house.
White walls look fresh and clean, and it also has the added benefit for the buyer of being extremely easy to work whenever they redecorate. It helps to buyer avoid scraping previous wallpaper off the walls.
Interior doors should all be freshly painted. Polish the brass fixtures and ensure all entries open and close nicely, no broken locks, etc.
Buyers are looking at making the most of space, it’s recommended storing objects into cupboards and has clean and tidy worktops.
In terms of your garden, the viewer may want to look inside your shed so don’t just throw everything in there, and it needs to look neat and tidy.
Please pay attention to your fences, make sure all the slats are in place, and it’s nicely painted or creosoted. Tidy up any visible items such as outdoor barbecues. People do still like to see a colourful garden so ensure it’s beautifully turned out. Flowering plants are lovely to see if the season is conducive.
Make your garage space more efficient, therefore providing more space for a vehicle.
People buy from people, so it’s always better if you do the viewings yourself as the seller. You will no doubt feel very passionate about your home and can show it off in its best light, albeit pointing out any small issues that you have encountered over the years (“We leaked, we fixed it”) to present a balanced view.
Estate Agents do want to earn their commission, but they will have a certain amount of knowledge on your home compared to you.
Finally, remember the emotions attached to buying a home. If you have a family, it helps to accentuate it has been a happy home for you, and this is sure to rub off on the viewers if they are thinking of raising a family also.
Off the back of Help to Buy in Sunderland, many builders started selling houses on a leasehold basis when traditionally homes had always been freehold. Over time this became a debatable topic at which the Government felt the need to step in.
Some of the country’s housebuilders got pointed the finger of putting profits before their social conscience while they are aware that they need to build homes for families they also have shareholders to answer.
The media had made it publicly known that there was a situation with land banking.
Land banking is a real estate investment scheme that involves buying large blocks of undeveloped land with a view to selling the land at a profit when it has been approved for development.
Thanks to consolidation, some builders have inherited land into their organisations which is on a leasehold basis.
It’s a debatable topic that they offer both leasehold and freehold properties for sale so that buyers can make an informed choice.
Many people had felt that the market had swayed much too far towards leasehold when it came to light how much profit the Builders had been making off the back of the leases.
Things came to a head when the Chief Executive of one of the UK’s most prominent Builders received a bonus of over £100m. At the time, this was one of the most substantial bonuses paid in corporate history.
Some Leasehold Homeowners were shocked when they were being quoted thousands of pounds in fees when they sought permission to make alterations to their homes. The fees were being charged by their Leasehold Management Companies.
Some of the annual ground rents were to double every ten years and owners could see that selling their home in the future once these increases have kicked in would be more difficult.
After notifying their MP’s and getting the subject debated in Parliament, the Government agreed that if you were buying a house (not a flat or apartment), then it is reasonable that you should own the freehold.
If you are in the situation of owning one of these houses and you didn’t realise if it was leasehold, then you should have been made aware. If you feel that the Solicitor acting for you did not give you the full facts about the lease you signed, you should re-contact them immediately to investigate why.
You can contact the freeholder at any time if you are interested in buying the freehold from them.
When Councils grant permission for Housebuilders to build on the land, they don’t always agree to adopt the common areas (such as grass verges) and roads.
That means that the upkeep of these areas needs to be outsourced, usually to a private company. The owners in the area then make a financial contribution to this maintenance work on top of their council tax. By the way, this can happen whether the house is leasehold or freehold.
The costs of the service charges can go up, which infuriates homeowners who are affected. Sometimes the residents in the area get together to form an association which might allow them to choose a different service provider.
If you are considering buying a leasehold property, take advice from your Solicitor regarding the lease. It’s straightforward to get carried away with the excitement of purchasing a home, but you also need to realise it’s a significant investment decision that you need to think about carefully.
Depending on who you ask, renting over buying may not be favorable to you. If you are younger and your parents or other family members have a mortgage of their own, then it is much more likely that they will encourage you to take out a first time buyer mortgage in Sunderland.
These days, though, we tend to see more people renting than ever before. Many seem concerned about owning their own home. As such, we will examine the advantages and disadvantages of buying and renting in Sunderland.
Often, mortgage payments can be cheaper than rent. Of course, this is not always the case, but it can happen based on the market! Payments can fluctuate as interest rates rise and fall, which means that many choose a specific type of mortgage.
A popular recommendation is a fixed-rate mortgage that keeps your monthly mortgage payments the same at the beginning of your mortgage term. This provides stability for you and the mortgage lender.
On the other hand, when you rent, your payments will remain the same or eventually increase in rare cases. A landlord has their own mortgage, and they are in the business of making money.
Many homeowners believe that their home ownership gives them and their families a sense of stability. So, if you stay up-to-date with your mortgage payments, you cannot be removed from your home if you do not want to leave. The same cannot be said for tenants.
Whilst there may be some protection for those who are renting if the landlord wants their property back you do not really have much of a say. Sometimes you may find the landlord will give you the chance to buy before it goes on the market, which can save them time and money.
Renting is usually more flexible than being a homeowner. An example of this would be if you found a job in a new area, you are free to give notice to your landlord or estate agent, and then move elsewhere.
It would be nice if it were so simple, but if you are a homeowner, it does not work that way. You need to decide whether to sell the property. Some may even let it out and become a landlord themselves.
Buying may not be the best option for you if you like to move home quite often or are not sure how long you will be in the area. Buying a home requires long-term stability, it is more of an investment than anything else.
A landlord is responsible for any repairs that are needed on the property when tenants are living in said property. When it comes to these repairs, some landlords will be better than others, so be prepared to fix some minor repairs yourself.
Homeowners are fully responsible for their own repairs, and usually mortgage conditions require you to insure your property, which is an additional cost to consider.
Although some are so highly regarded, owning your own home will not be something everyone wants to do. If you are a young couple, there is no shame in renting together to see what it would be like living under the same roof together for a while.
It may not go the way you would like it to, and unfortunately, if things do not go well, it can be difficult to remove a name from a mortgage once you are both tied into something contractually. With renting, it will be slightly easier.
Buying a home is a huge financial commitment and not something to rush into, however, if you rent a property, you can find it much harder to save for a deposit. In the end, most people decide to buy through renting, though it all depends on the person and their circumstances.
Mortgage payments benefit you, unlike renting, which puts money in someone else’s pockets. As such, most would rather do something for themselves. Timing is the key, so always make sure you are in a strong and stable financial state before you want to buy.
The property market is unpredictable and always changing. If you bought a property and suddenly fell in value, you could understandably be disappointed. Alternatively, it can go the opposite way too and your house can go up in value.
Over the years, we have seen this happen to many different people. Having said that, history has shown that even if this happens, if you’re patient enough, the value may eventually rise again. Of course, it depends on whether you can afford to keep the property in the meantime.
A good example of this is looking at what properties sold for during the era of the Credit Crunch. Arguably one of the worst economic times of our lives, but years later, property prices were again higher and the market was booming!
You may also be in a position where you may lose money if you must sell your home at a time when the real estate market may be underperforming for reasons such as relationship breakdown or reduced income.
Before you commit to buying a property, it is worth getting in touch for mortgage advice in Sunderland before your first buyer mortgage in Sunderland. We can see how you can protect yourself from circumstances that could affect your ability to repay your mortgage.
After all, it’s not just an investment, it’s your home. The most important thing here is to find something that matches your situation.