Many people are having difficulties with their finances at the moment because of the pandemic, and if this applies to you then you certainly aren’t alone. The pandemic affected many lives and businesses like the residential real estate market, because of health concerns and issues, the physical distancing, stay-at-home orders and economic uncertainty, many cities experienced a noticeable drop in home sales. The unemployment rate during the pandemic was high, so many homeowners have struggled to pay their mortgages and many of them reconsider their household needs.

Despite the large drops in home sales due to the pandemic brought by COVID-19, real estate activity began to improve today, potential home buyers started to increase their housing search and purchase activity.

If you are one of those homeowners who is planning to purchase a new home or do some home renovations today, it is important that you put plans in place, so you aren’t spending unnecessary money on high-interest repayments.

It is true that mortgages can be a highly efficient way to borrow money as the rates are always lower than those on other products such as personal loans or credit cards. The downside is that mortgages can last for an awful long time, typically 25 years and sometimes more. With the age of first time buyers increasing to nearly 40 for those without any parental help, it can mean years of saving for a deposit and then paying off a mortgage into your sixties or beyond. There are, however, some things you can do to save on the cost of your mortgage.

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Review your current mortgage

The first thing any mortgage holder should check is that they are on the best mortgage deal. Rates are historically low and it may well be possible to switch to a cheaper product, doing so could save you many pounds every month.

Check for any early redemption charges that may apply to your existing mortgage and fees on a new mortgage. Even if they do apply, it may still be cheaper in the long term to move, so do your sums carefully.

If you do find a cheaper deal, it’s well worth the admin involved to switch, so don’t be afraid of the perceived hassle. A little bit of paperwork could save you thousands over the term. New buyers should always shop around and seek out the best mortgage with low rates and flexible terms.

 Switch to a repayment mortgage

If you are on an interest only mortgage you may want to think about switching to a repayment mortgage. Whilst this will probably cost you more each month, you can be sure that at the end of the term, you won’t be left with any outstanding debt to pay off.

If, at the same time, you are able to move onto a product with a lower rate of interest, it may not even cost that much more and you have the peace of mind of knowing that your mortgage will be fully paid off at the end of the term.

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Overpay your mortgage

The most effective way to save on your mortgage is to overpay. Paying off more than the required amount means you pay less interest overall and your mortgage ends sooner. Assuming the interest is calculated daily, any overpayment starts working for you immediately.

Work out how much extra you might be able to afford paying each month, say  75 or  100 and then ask your lender to calculate what impact that will have on your mortgage. They will be able to tell you how much time you would shave off the length of the mortgage and how much you would save in interest payments. You can do the same with a lump sum payment.

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An added benefit of overpaying is that it will increase the equity available in your home which may help you re-mortgage onto a product with lower interest rates, therefore saving you more money.

Whatever you decide to do, these straightforward steps should help you on your way to save on your mortgage and even become mortgage free sooner than you’d hoped.

For the majority of people, home ownership is the goal in life. There is something so very secure about the feeling of being a homeowner, of knowing that you have your own place in the world that is just yours. You don’t have to worry about what your landlord will think if you decide to put up artwork and you can make decisions regarding your own decor like never before. It’s no wonder ownership is the goal for so many people.

Of course… then there’s the downside.

The truth is that home ownership is not a cure-all, a guarantee that life from this point onwards will be simple. There are moments when a homeowner will desperately wish for the freedom of renting again; perhaps even to the point they wish they were back living with their parents.

So if you’re contemplating your first purchase – or have already bought, and just want to know others go through the same range of emotions as you do – then it’s worth taking the time to examine the ups and the downs.

UP: Your Status Is Improved

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There is something about the mere idea of being a homeowner that makes people take you a little bit more seriously. You have proven that you are able to convince a bank to lend you money, so you must be a serious, reliable person. You have undertaken a huge responsibility, and there’s no doubt about it: you will be treated differently – better – because of it.

You’ll find it easier to secure finance in the future, be it for a car or poor credit homeowner loans to spend on household renovations. You will also be offered preferable rates by insurance companies. So yes, there’s definitely a status boost to being a homeowner.

DOWN: You’re Responsible If Something Goes Wrong

If you have a problem with an aspect of a house while renting, it’s not really your problem. If the boiler breaks down or a window needs replacing, your entire involvement is based around calling the landlord and then waiting for them to do the work.

If you’re a homeowner, you have to rectify these – often expensive – problems yourself. It’s not an enjoyable experience. You have to learn to have an emergency fund on hand for those sudden, unavoidable household repairs, as well as the knowledge that you can’t just move out if the problems become intolerable.

UP: The Sense Of Permanence

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Even if you live in a rented home for a long period of time, it is rarely with a feeling of permanence. You are always subject to the whims of the landlord. They might decide to sell, to raise your rent, or just to evict you to use the house for their own purposes.

As a homeowner, providing you pay your mortgage, the only person whose whims you are subject to is you. You can truly put down roots, become a part of the community, become friendly with your neighbors. You know you’re going to be there for awhile, which can be reassuring and help to provide a sense of safety

DOWN: You Can’t Move Quickly

When you rent, the only thing holding you back is the notice period you have to give – other than that, you’re free to move as you please. If you get a job offer that requires a cross-country move, you can take it without a second thought.

As a homeowner, you don’t have that luxury. That same permanence that is such a benefit in some ways, suddenly becomes cloying and restrictive. While there’s always a chance you will be lucky and be able to rush through a quick sale of your home, the reality is that house sales take around six weeks if you’re lucky, as well as the possible delays with the legal side of things. If things don’t progress as quickly as you would hope, there’s a chance you will have to turn down a lucrative job offer solely because your house won’t sell – and that’s no fun at all.

Overall, home-ownership is the goal because of the safety and security it provides – but to pretend it’s all smooth sailing is to misrepresent the reality somewhat. So enjoy the ups and try to survive the downs as best as you can. Keep a small emergency fund for all of those repairs, and ensure you keep the house in good order and condition in case you one day need a quick sale. With these steps, you should be able to ensure you have far more ups than downs.