Paying the Money Back on your Mortgage
There are a number of ways in which you can pay back the money owed on your mortgage. Most people will take the normal route of paying it back on a month-to-month basis at the rate that you agreed. Others may decide half way through their mortgage that they want to defer or only pay back a smaller percentage then they originally intended. Either way, there is one golden rule to remember; the longer you take to pay back your mortgage, the more it will cost you.A mortgage debt may seem like an overwhelming burden to you, and you may want to pay back as soon as possible, bear in mind that if you do decide that you want to make any extra payments then these must be agreed with the lender, or you will be charged for it.
The best thing about your mortgage repayments is that it doesn’t matter where the money comes from to pay it back, as long as the lender receives it. You may have bought another property and sold this on and then decide to make the repayments out of this money. You may have a buy-to-let property that you are renting out and choose to pay for payments through this. As long as you are not obtaining the money illegally, the lender will not mind.
Extending the TimescaleA lot of people will extend the period of their mortgage because they take out extra top-up loans or they need to change their payment method for a period of time. This is fine, but just remember, you will have to pay it come what may in the end, and you don’t want to be left with ten years still left on your mortgage when you are sixty years old.There have been a few lenders who have come out with the notion of a mortgage that can be passed down through generations, so you might only pay the interest on the mortgage in your lifetime and can leave this to your children. This is probably not the best idea and you should talk long and hard with an adviser before you consider such an option. Not only would your ultimate payments be high, the amount of interest the lender would get over the term of the mortgage would be very high.
When it comes to a mortgage it is best to start off slow and work your up to repayments, as this means there is less chance of you failing to meet your payments. Once you have built up some equity in your property you could also consider moving to a bigger house, as you will be able to borrow more and have the safeguard of your existing equity to fall back on should you need to.
It can be a scary thought knowing that you owe a lender a huge sum of money, but it doesn’t have to be, and you should picture the day in your head when you finally make your very last mortgage payment, and think of what a great feeling it will be.