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Published on : September 2, 2019 10:04

Beat the Brexit Wave | Part 4: The secret to future-proofing your first home

Thanks for tuning in for our next installment on how to beat the Brexit wave.

We’re on part four which means we’re almost at the end of our five-part series – but don’t worry, we’ve still got plenty of knowledge to pass onto you yet.

Throughout parts one, two and three our aim has been to provide you with enough confidence and knowledge to help you take that all-important first step onto the property ladder.

But, if you’re still feeling a little uneasy about the prospect of becoming a homeowner, today’s blog is for you.

We understand buying a house is a huge decision, it’s probably one of the biggest financial commitments you’ll ever make. It’s perfectly normal to feel a little nervous, but you shouldn’t let that get in the way of owning your first home.

If the reason you haven’t moved yet is that you’re too worried about the ‘what ifs?’ we’re here to help. Today we’re going to tell you how you can remove the risk of owning a home, so you can stop talking yourself out of getting onto the property ladder.

Fixing your mortgage payments

Fixing your mortgage is one of the best things you can do to help future proof your finances. Why? Because you have the certainty of fixed monthly repayments on your mortgage over a certain period of time.

The bank of England is able to increase or decrease rates throughout different points in the year, which is great if it looks likely that they’ll go down.

However, if the Bank of England decides to increase their base rate and you’re on a tracker or variable mortgage, it’s bad news. If your pay doesn’t go up or doesn’t increase as fast as interest rates rise, then there’s a shortfall.

This could lead to a real squeeze on your finances or, worst case scenario, you realise you can’t keep up with those monthly repayments which would put your home at risk.

So, the best way to avoid getting yourself into a financial pickle is by fixing your mortgage. There are fixed rate terms that range from as little as 2 years right the way through to 10 years, so you can be flexible with the amount of time you want to fix for.

Accident, sickness and redundancy insurance

How would you like to keep a roof over your head if you couldn’t work due to ill health? If you fall ill, have an accident or end up losing your job, chances are you’re going to struggle to pay for more than just your mortgage!

A lot of people adopt the ‘it won’t happen to me’ attitude but according to statistics, over 1 million people in the UK find themselves unable to work due to a serious illness or injury (ABI 2017).

The best way to make sure your mortgage is covered in this situation is with accident, sickness and redundancy insurance. This is a short-term insurance policy that will pay out a regular income if you’re unable to work.

As this is short-term cover, the benefits are only paid out over a set period of time, typically 12 to 24 months.

Income protection insurance

Income protection insurance is similar to accident, sickness and redundancy insurance but the main difference is the length of time you are covered for.

This is a long-term insurance policy designed to help you if you can’t work because you’re ill or injured. It ensures you continue to receive a regular income until you retire or are able to return to work.

Hopefully, these tips have left you feeling a little more confident about getting your first foot on the property ladder. If you’d like to speak to a financial expert about mortgage rates or insurance policies that would best suit your individual needs, please get in touch.

Call our team of financial services experts today on 0161 443 4548 or click here for more information.

If you’re still on the fence about taking the first step on the housing ladder, we’re here to help. This is the fourth article in a five-part series that is going to help you better understand the current housing market and why it’s so important you miss the Brexit wave.

Tune in for the final part tomorrow!

Want to talk to one of our mortgage advisors about how we can get you on the housing market?

Click here to book your free, friendly consultation.

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