Focus on Mortgages

Picture of new house

Mortgages are a fact of life for most of us at some time in our lives. Unless you are fortunate enough to have inherited wealth or to win a substantial amount on the Lottery or Premium Bonds you will probably need to take out a mortgage to buy your family home.

I would describe this as ‘good debt’ as having a home of your own will provide a secure base for you and your family.

Of course, if you overstretch yourself by taking out a mortgage which is really beyond your means to pay in the long term then this is starting to look more like ‘bad debt’.

Whilst residential property prices have risen over the long term you can get into serious trouble with mortgage payments that are stretching you, for example, if one partner has to give up work to start a family. Whilst home repossessions in the UK were just 4,580 in 2019, there have been 9 years in the last three decades when the number of repossessions were at least 40,000 in a year (www.ticfinance.co.uk/stats/).

The links below will help you decide the most appropriate type of mortgage for your circumstances together with the right repayment method and best type of mortgage interest rate.