Ipswich Financial Adviser

Archive for the ‘Mortgages’ Category

Well in many situations this could be true, however, when it comes to mortgages you need to be careful. The cheapest interest rate might not be the cheapest deal overall.

Many low interest rates now come with very large arrangement or booking fees. These are fees that you have to pay to the lender to get the interest rate you want. If you don’t calculate the effect of this arrangement or booking fee than then overall cost of the mortgage can be a lot more than going for a higher interest rate in the first place, that doesn’t come with such a large fee.

These large upfront fees usually work well on very large mortgages, potentially in excess of £250,000, so if your mortgage is not this large, do take time and work out how much you are really paying for your mortgage when you include all the costs involved.

If you need any help or advice to ensure you get the right mortgage deal for you then contact Thompson Financial Consulting Ltd

Your home may be repossessed if you do not keep up repayments as your mortgage.

So what debt would you rather have? It is interesting when you start thinking about the consequences of the type of debts that many of us have.

Not all debt is necessarily bad, if you are borrowing money to buy an asset that appreciates in value or gives you a regular income or return, then the debt could be seen as being good. By borrowing money you can increase your overall wealth. The classic example of this is using a mortgage to buy a property. (but remember the bank can take the property away from you if you don’t keep up the repayments to the mortgage)

On the other hand ”bad debt” is taken out to buy something that falls in value or does not pay any sort of income or return to you.  Examples would be a car loan or credit cards. These debts can not add to your overall wealth.

What you want to do is repay any ”bad debt” you may have as quickly as possible and then look for opportunities to have “good debt” that could increase your overall wealth.

Remember borrowing any money always has a risk attached to it!! If you need any fianncial advice please contact Thompson Financial Consulting Ltd

Your home may be repossessed if you do not keep up repayments as your mortgage.