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.

Moving in a new home is an exciting milestone for everyone; however, it can be easy to forget a few important things in the midst of so much excitement. For this reason, it is important to take the time to plan each aspect of the move carefully. This will help to ensure that you have everything you need available to you upon your arrival. If you are planning an upcoming move, then the following checklist will help you plan for your move so that everything will go smoothly on your big day.

Turn on the Utilities

If your new home does not already have the electricity and water turned on, then you will need to contact your service provider to establish a time to have it connected. Additionally, many people find it helpful to already have other services ready before they move in their home. By arriving with everything already connected, you will be able to get straight to work.

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Stock Up on Food and Water

Upon arriving to your new home, you will need to have the basic necessities, such as food and water, available for you to quench your hunger or thirst. On your first day, bottled water and some snacks will be sufficient; however, if you have children, then you may need to plan for some more substantial meals. While stocking up on food, be sure to include some dishes and silverware so that you will be able to prepare a few simple meals.

Take Cleaning Supplies

One of the first things you will want to do in your new home is clean up the main living areas and bedrooms. Everyone has their own favourite methods of cleaning, so be sure to take along a broom, mop and any household cleaners you prefer. While packing, be sure to also throw in a few sponges and a toilet brush so that you can make sure that the most important areas of your home will be ready when they are needed.

Include Basic Necessities

On your first day in the new home, you will need a few basic items for everyday life functioning. Keys will be necessary to unlock the doors when entering. New homes also rarely come equipped with light bulbs so you may need to invest in a large package if your new home has several fixtures. Finally, throw in some toilet paper, disposable plates and paper towels to ensure that you have an easy way to clean up any small messes.

Bedding and Personal Care

After all the hard work you will do on moving day, it is essential to have a few items available to make bedtime more comfortable. Be sure to pack your bedding and pillows along with your favorite pajamas. If you have young children, then make sure that they have any stuffed animals or other comfort items. Finally, make sure to include anything you need for showering and brushing your teeth. Having your favorite shampoo on hand can help you get ready to face your second day in a new home.