I advise you to research well and consider the type of mortgage you intend to take on carefully. If you commit to a full term endowment, for example, you can’t pay it off early. That means that you have limited options. A straightforward repayment mortgage, on the other hand, offers you some flexibility in the way you handle your finances. You must, of course, make sure that you can make extra payments on it before you take it out, but that shouldn’t be a problem.
In the early days, most of your payments go towards the interest on the loan and little comes off the balance. If you can reduce the balance quickly, they cannot charge as much interest on it. Then, more of your monthly payments will go towards reducing the balance further. It is easy to see why you can save tens of thousands of pounds that way. The guys at Hampton estate agents fees in Amersham reckon you can reduce the term of the loan significantly by paying a third again on top of your monthly repayments.
But what will you do with the money you save on the mortgage when you own the property? Here are some awesome ideas.
Many people choose to splash out on a second home in the sun. Europe is open for business, and you can find property over there for a bargain price if you are wise. Even if you have to take on another mortgage to fund the purchase, you know what to do. In ten years or less, the place could belong to you. Renting it out when you are not there will bring in an extra income too. That sounds idyllic to me!
You could invest some of your money back into the house by improving it. Think about adding extra bedrooms with an extension or loft conversion. An indoor swimming pool would make you the envy of your neighbours; there are some stunning pool enclosures on the market.
You deserve a holiday of a lifetime where you can experience all of the places you ever wanted to see. Maybe a cruise around the Mediterranean is your style, or would you prefer an African safari? There are too many options to list here, but you get the picture.
Men and women alike have a passion for vintage cars. Now that you can afford one, which will it be? Ferrari have produced some incredible works of art over the years; there is sure to be one to suit your image.
My kids couldn’t wait for me to win the lottery. Little did they know that they would find themselves in private education if I did. If your horrors are making your life a misery, pack them off to boarding school so that you can enjoy peace and quiet once more. Seriously though, the threat may be all it takes to bring them in line.
When your home is free of debt, a world of possibilities opens up before you. What will you spend you cash on? It is a personal choice, but the suggestions above appeal to me; especially the last one. For now, pour a shot of whiskey and light a cigar with a banknote. Make the most of a mortgage-free life; you deserve it.