subject: Tighter Budgets Mean Long Term Mortgage Planning Vital [print this page] Tighter Budgets Mean Long Term Mortgage Planning Vital
A poll taken this week has revealed that 63% of people say that they are more careful with their money now than they were a year ago, perhaps because they have realised that some strategic planning leads to savings.
When it comes to financial pressures, perhaps the biggest worry is whether or not you will be able to pay the mortgage each month. Changes in income, even by a fraction, could have big consequences.
For this reason,mortgage advisers place great emphasis on mortgage planning. Mortgage planning involves ensuring a plan is in place to manage the mortgage in line with your plans for the future; takes into account possible interest rate rises in the future and also extends to protecting mortgage payments in the event of becoming unable to meet them.
Mortgage planners talk to you about possible reductions in income in the future and make sure you only borrow what you will be able to afford should circumstances change. For example, if you plan to start a family in the near future and switch to a single or part time wage, you'll need to ensure the mortgage doesn't become a burden.
If income stops, a policy needs to be in place to ensure mortgage payments can continue to be made. Redundancy insurance; accident and critical illness cover; life assurance. All initiatives that yourmortgage planning consultant will discuss with you.
Speak to awhole of market mortgage and protection consultant about mortgage planning; your future is important: protect it.
Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.
