Finding The Right Financial Services Before Buying A Property
When it comes to buying property, then for the majority of us we will have to take out a mortgage.
Yet these days it can be bewildering as to where to start with such a large range of products available, particularly for the first time home buyer. For most people it is the largest purchase they will have made in their lives so far. So it is very important to take time to get the right deal for you.
Whilst how much you can afford is a key issue when taking out a mortgage, you often need to think about other factors such as when you are likely to want to move again, or if you may wish to rent out the property in future.
The days of self certification mortgages are long gone, so you can no longer take out a mortgage for more than you can afford in relation to your earnings.
Indeed there are likely to be more changes put in place by the government so that you may even be asked as to how you will continue to finance your mortgage, should the interest rate rise sharply in future.
You also need to think carefully if taking out a mortgage with a partner, as you will also need to fund life insurance to ensure that should one of you die that the mortgage will be paid off.
Whilst you are likely to get advice from an Independent Financial Advisor (IFA), you need to be aware that they get paid commission for products they sell you, however the law with regards to this has already gone through some changes with them now having to state how much money they will get paid for selling you each financial product they sell you.
It is likely that further changes may occur with regards to IFA’s with the possibility of them just being paid a salary with no commission, this is following the massive payment protection insurance (PPI) miss-selling scandal, whereby PPI was sold to millions of people who did not want or even need it.
So when it comes to taking out a mortgage also do your own research online before making any decision. Buying the wrong financial product, which may as an example be low cost for the first two years, could see you tied into a long term deal that you later cannot afford. So make sure you get the best financial advice possible.